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Fuel prices will hit £1.20 a litre again 'very quickly', says industry body

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Fuel prices in the UK are set to rapidly rise following the middle east's OPEC decision to cut production.

Output is set to fall by 1.2 million barrels per day, and will see Brent Crude heading towards US$55/barrel according to City analysts such as Morgan Stanley.

Brian Madderson, chairman of the Petrol Retailers Association (PRA) said, “this producer’s accord could push pump prices up to 120ppl very quickly and was one of the reasons we argued for duty cut of 3ppl in the Autumn Statement. 

“I am afraid the Chancellor was just too timid and missed a great opportunity to help consumers and businesses going forward into 2017.

“With wholesale costs rebounding by nearly 2ppl in the last two weeks, we should expect further increases next month just as the festive driving season and Christmas online deliveries get into full swing.  This OPEC announcement will be welcomed by the producers - but is not good news for the UK economy and inflation.”

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