Diesel climbs back over �1 mark

DIESEL prices tip-toed back over the pound barrier this week despite the cost and demand for oil continuing to drop.

DIESEL prices tip-toed back over the pound barrier this week despite the cost and demand for oil continuing to drop.

Petrol stations in Felixstowe and Martlesham Heath were both selling diesel at more than a pound per litre today as the poor exchange rate continued to hit fuel companies.

Average fuel prices dropped considerably in late 2008 as the price of oil plummeted, but they have been on the rise recently with an average 2p rise in the last two weeks.

BP was selling diesel at 101.9p per litre at their station in Anzani Avenue, Felixstowe, and 100.9p per litre in Anson Road, Martlesham Heath.


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RAC motoring strategist Adrian Tink said: “Unfortunately it looks like we're seeing the end of falling fuel prices.

“Given that demand for oil is down and the price of a barrel of oil is down, it seems very strange to motorists that the price at the pumps is on the up.

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“Undoubtedly the blame will fall on the weak pound, but given the current economic climate it's difficult to swallow these rising prices.

“Fuel retailers, oil producers and the Government need to do all they can to keep the prices down.”

Experts believe the rises are likely to continue for some time, and with petrol prices rising at a similar rate, motorists may start to feel the squeeze.

Oil prices are now almost as low as US$40 a barrel, but the national average diesel price topped �1 last week.

There was some hope, however, as the pound rallied slightly today following the Bank of England's 0.5 per cent rate cut to a two-month high.

Sterling climbed above 1.15 Euros for the first time since early December as interest rates fell to one per cent, while the European Central Bank kept rates at two per cent.

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