Petrol prices set to increase by January

Fuel tracking website petrolprices.com says they expect the price of petrol to rise by upto 8p per litre by January, taking the current average of £1.15 per litre to £1.23.

On November 30 members of the OPEC (The Organization of the Petroleum Exporting Countries) oil cartel agreed to cut output by 1.2 million barrels a day with the intention of increasing the price of a barrel of oil. This was the first agreed cut in production since 2008 and will come into force on January 1.

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Now other non-OPEC countries, such as Russia, Saudi Arabia, Mexico and Oman, have also agreed to reduce their output. This agreed cut sent the price of crude oil surging to its highest in 17 months, which will have a knock-on effect at the petrol pump.

The rise comes as a stark contrast to the same time last year, when oil was dropping below $30 a barrel, but heading into 2017 that price looks set to rise above $50.

The first meeting of a committee of OPEC and non-OPEC countries monitoring the recent agreement is proposed to take place on January 13 in Abu Dhabi.

Jason Lloyd, Managing Director at petrolprices.com, said; “Since OPEC announced  the production of crude oil would be restricted, fuel prices have gone up. Further efforts from the group will see the price of a barrel of oil exceed $60 which means that UK motorists are going to feel it in their pockets in the coming ten days.

“Everyone will be affected so motorists need to keep an eye out for the cheaper petrol stations in their area. Supermarkets are less susceptible to these increases and will look to capitalise on their fuel voucher schemes to entice shoppers.

“This upward trend is likely to continue throughout 2017, although it will continue to fluctuate based around key global events. We are unlikely to see the extremes of pricing near the 145p levels of 2012 with the oil strikes, but we do expect prices to reach between 120-130p per litre in 2017.”

Will the price hike impact your riding and make you less likely to go for another lap of your favourite loop? Let us know below.

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