Fuel prices 2023: drivers hit by largest monthly petrol price hike in more than two decades

The RAC has said that last month saw drivers contending with the highest monthly price hike for petrol prices at the pump in at least 23 years.

Prices spiked on average 7p per litre at the pump in August 2023. Diesel prices in the same month spiked by 8p per litre, marking the sixth biggest monthly price jump in the same time period.

The motoring organisation said that the rising cost of filling up your tank came from an increase to the price of oil stemming from producing group Opec+ reducing supply. The price, which was at 12 US dollars per barrel in early July, has skyrocketed to 87 US dollars per barrel.

This jump in wholesale price has since been handed down to drivers at the forecourt.

RAC fuel spokesman Simon Williams said: “August was a big shock to drivers as they had grown used to seeing far lower prices than last summer’s record highs. Seeing £4 or more go on to the cost of a tank in the space of just a few weeks from a pump price rise of 6-7p a litre is galling, particularly for those who drive lots of miles or run an older, less fuel-efficient car.

“While the increase is clearly bad news for drivers, it could have been far worse had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up.”

“All we can hope is that this move by many big retailers back to fairer forecourt pricing remains when wholesale costs go down again. Only time will tell.”

It comes after supermarket petrol retailers were criticised by the Competitions and Market Authority for gouging drivers at the pump due to a lack of competition. There have also been calls to introduce a petrol price comparison tool to allow drivers to shop around for the best deal and encourage better competition between retailers.