Anyone who drives a petrol car is being stung by rising fuel prices at the pumps, according to the latest inflation figures released on Thursday.
The Office for National Statistics has issued its latest Consumer Price Index figures for July as it revealed that inflation has increased to 3.8%, the highest rate since January 2024.
The ONS said the increase is due to the soaring cost of flights, food price increases and the cost of petrol going up.
The average price of petrol rose by 2p per litre between June and July, and the average diesel price by 2.9p per litre over the period, the data showed.
The RAC said that the average price of a litre of unleaded at the end of July was 135p – up 0.85p from 134.15p at the start of the month, while diesel rose by 1.64p from 141.21p to 142.85p.
The increases follow respective rises of 2p and 3p in the previous month which means the price of petrol has gone up almost 3p and diesel by 4.5p since 1 June. Consequently, the cost of filling a 55-litre family car now stands at £74.26 for unleaded and at £78.57 for diesel.
What’s more, petrol is now at its most expensive point since mid-April, whereas diesel was last at its highest in the third week of March this year.
RAC fuel spokesperson Simon Williams said: “Unfortunately, drivers heading into the busy summer holiday season will be met with rising prices at the pumps, as the cost of fuel increased in July for the second month running.
“While the average price of petrol for the year so far is just a couple of pence above the average for all of 2021, drivers are still meant to be benefiting from a 5p-a-litre fuel duty discount (52.95p as opposed to 57.95p) which has been in place since the start of the Ukraine War in early 2022.
“Our analysis of the difference between wholesale and retail prices shows retailer margins remain high, particularly on petrol. This is emphasised by the fact the average price of unleaded in Northern Ireland is 7p cheaper than the average across the UK.
“Drivers may also see significant differences on forecourt totems from area to area which can be very frustrating. To buy the best value fuel it’s important to keep an eye out for the lowest prices around.”
The ONS said transport was the biggest factor driving up overall inflation last month, particularly due to a spike in flight prices as families booked trips during the school summer holidays.
Grant Fitzner, the ONS’s chief economist, said: “The main driver was a hefty increase in air fares, the largest July rise since collection of air fares changed from quarterly to monthly in 2001.
“This increase was likely due to the timing of this year’s school holidays.
“The price of petrol and diesel also increased this month, compared with a drop this time last year.
“Food price inflation continues to climb – with items such as coffee, fresh orange juice, meat and chocolate seeing the biggest rises.”
Chancellor Rachel Reeves acknowledged that there was “more to do to ease the cost of living” following the figures.
She said: “We have taken the decisions needed to stabilise the public finances, and we’re a long way from the double-digit inflation we saw under the previous government, but there’s more to do to ease the cost of living.
“That’s why we’ve raised the minimum wage, extended the £3 bus fare cap, expanded free school meals to over half a million more children and are rolling out free breakfast clubs for every child in the country.”