Fuel costs are rising at their fastest monthly pace for many years amid twin pressures from rising oil costs and a weak pound.

According to the RAC, the cost of unleaded rose more in October than in any month since February 2013, while diesel prices rose at the fastest rate since May 2008.

The motoring organisation charted a 4.4p-per-litre increase in average petrol costs to 117p.

It said diesel was at almost 119p by the end of the month, up 5.2p-per-litre on 2 October, leaving the average price of both fuels at their highest level since July 2015.

Image: A barrel of Brent crude oil cost more than $110 in 2014

Rising petrol costs have been a major driver behind the recent growth of inflation in the UK - with the headline rate rising to 1% in September.


The increases measured by the RAC are tipped to add further upward pressure in October's reading.

Its fuel spokesman Simon Williams said: "The effects of the weak pound have really been felt on the wholesale market, and this, combined with an oil price at nearly double its lowest level in 2016, has put significant upward pressure on wholesale fuel prices.

"Retailers have had no choice but to reflect these dramatic increases in the prices they charge at the pumps."

Image: Sterling has fallen 18% versus the dollar since June

The average price of unleaded and diesel stood just above £1-per-litre early this year as Brent crude oil prices tumbled below $30 a barrel amid massive oversupply and weak global demand.

They have since recovered to near $50 - with that increase not reflecting a new price pressure from the collapse of the value of the pound following June's EU referendum which has made oil - priced in dollars - more expensive for UK producers.

A separate study by the AA on Tuesday revealed more information on the 2p-per-litre disparity between petrol and diesel costs.

It said: "A surge in the price of biofuel for diesel is adding further pain at the pump for businesses and rural drivers who favour the 'workhorse' fuel over petrol.

"With the weaker pound making pure diesel 7p a litre more expensive than it would have been had sterling kept last October's value, the increased cost of biofuel is adding a further 1p - before tax."