Petrol prices ‘to rise again’ after oil exports cut by 2m barrels a day

Motorists could face another rise in fuel prices due to a cut in oil exports, the RAC has warned.

Energy ministers meeting at the Vienna headquarters of the Organisation of the Petroleum Exporting Countries (OPEC+) made the decision to cut oil production by two million barrels per day starting in November.

This is the largest supply cut by the group - which includes Saudi Arabia and Russia - since 2020. Despite the group saying it wants to stabilise prices, the RAC said the decision would “inevitably” lead to higher fuel costs.

A spokesman for the motoring group said: “The question is when, and to what extent, retailers choose to pass these increased costs on at their forecourts.

“Despite three straight months of pump prices coming down, we believe that in many cases drivers are being charged more to fill up today than they should be based on average wholesale prices over the last few weeks.”

The move was met negatively by Washington, with US president Joe Biden “disappointed” by the deal he called short-sighted.

“The decision is technical, not political,” United Arab Emirates energy minister Suhail al-Mazroui said as members gathered in Vienna to discuss the plans.

Saudi energy minister Abdulaziz bin Salman stressed the role of OPEC+ as a guardian of stable energy markets.

“We are here to stay as a moderating force, to bring about stability,” he told reporters. “We are going through a period of diverse uncertainties, which could come our way, it’s a brewing cloud.”

Oil prices had already risen this week as supply was expected to be cut, raising fears this will push up fuel prices as a result.

The price of a barrel of Brent crude increased another two per cent on Wednesday to more than $93 (£82) a barrel. It reached a high of $139.13 (£123.26) a barrel in March, the highest since 2008, after Russia invaded Ukraine which triggered fears of Russian oil supply loss.

The average price of unleaded petrol is 162.43p a litre, according to the latest RAC fuel watch data, while diesel is at 180.28p a litre.

In July, unleaded petrol rose to 191.43p a litre, while diesel soared to 199.07p a litre.