Scots still pay most for fuel as oil prices yo-yo

Published on Thursday 21 July 2011 14:44

FUEL prices have bounced back to near last month's levels despite the release of oil reserves, the Automobile Association reported today.

Diesel in Scotland remains the most expensive in the UK, with petrol near average, according to its monthly fuel price report.

On Tuesday, diesel averaged 140.3p a litre north of the Border, 0.2p less than a month ago, and compared to 139.68p in the UK.

Unleaded averaged 135.6p in Scotland, down 0.7p, and compared to 135.62p in the UK.

The AA said average petrol prices had dropped by nearly 2.5p in early July before increasing by 2p in the past two weeks.

It said hopes that releasing strategic oil reserves would stall further price rises had been dashed by market speculators who predicted Brent crude oil would reach $120 a barrel in six months and $130 in a year, sending oil prices up $5 in one day. The price reached nearly $119 yesterday and the AA said the weak pound had increased the impact on the UK.

AA president Edmund King said: "The cost of motoring continues to be the top concern of motorists. The yo-yo prices can make quite a difference in terms of when and where a driver fills up. We advise drivers to shop around, cut out unnecessary journeys and stick to speed limits to conserve fuel."

The AA report came as the main hauliers' group ruled out direct action over fuel prices.

Richard Fry, the new chairman of the Road Haulage Association, said disruptive protests like those in 2000 and 2008 were not the answer because of the reputational damage to firms if they took part.

He said the focus should instead be on the number of foreign trucks entering the UK with cheaper fuel from abroad.