Why petrol prices just keep on rising - and what Oldhamers can do about it

Last month, the RAC reported their largest monthly increase in petrol prices since the firm began tracking them 18 years ago.

They rose by six pence a litre, causing average petrol prices to hit 129.4p per litre, while average diesel prices rose by the same amount to 132.3p per litre.

Oldham's prices are slightly below this national average, at 128.9p, but data from across the North West shows that prices can range from around 117 to 149ppl.

This is due to a pricely cocktail of factors.

The first is of course the falling value of sterling post-Brexit.

As oil is traded in dollars, the pound's relative weakness makes it more expensive to purchase the commodity.

This, coupled with the higher global market price of crude oil, contributes to higher costs for drivers.

Despite these changes, drivers will notice too that the regional variation in oil prices can make a large difference.

The main cause of said variation is the level of competition in a given area.

Oldham, with its relatively high competition from supermarkets, can enjoy lower prices than some parts of the North West as driver's don't have to drive too far for a lower price, forcing suppliers to compete.

Websites such as confused.com can also be handy to tackle this, showing the cheapest fuel around Oldham currently to be 120.9ppl from the town centre Sainsburys.

Even supermarkets though, despite their uniform pricing on other items, can charge vastly different prices for petrol at different stations.

Suppliers can also bolster their profit margins by increasing prices by more than their cost increases require, knowing that people expect Brexit and other factors to take their toll.

This would be highly problematic if it were the case, with around 20% of the UK population living in relative poverty and taxation on fuel already constituting over 60% of its price.

For Howard Cox, founder of the FairFuelUK campaign, this exploitation demands action.

He said: "We need to have some sort of regulatory body - not to control profits but actually to show transparency at the pumps; when oil goes up, what do drivers have to pay as a result?

"And equally, when oil goes down, let's see the prices come down fairly at the pumps too."

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