The RAC has warned that drivers are 'in for a hard time at the pumps' as increasing demand from China along with production cuts by Saudi Arabia and Russia are sparking a hike in oil prices.
Brent crude, the oil price benchmark, ended Monday at 94 US dollars per barrel, its highest price since mid-November 2022.
Before the start of this month the highest oil price of the year was 88 US dollars in January.
The average price of a litre of petrol has already risen by 10p since the beginning of August to 155.5p, its most expensive level since mid-December last year.
RAC fuel spokesman Simon Williams said: “Diesel is set to jump in price from its current average of 159p a litre to over 170p.
“But the situation with petrol is different with RAC Fuel Watch data showing that prices on the forecourt are actually too high due to retailers taking bigger margins than normal.
“If they were playing fair with drivers, they would be reducing their prices rather than putting them up.
“However, if oil were to hit 100 US dollars, it should really only take the average petrol price up by another 2p.
“But if retailers remain intent on making more money per litre with increased margins then this could be closer to 160p.”
Sanjeev Lal, operations manager of Blakenhall Service Station, Wolverhampton, previously told the Express & Star: "There are a number of reasons for the price increases. The oil prices, supermarkets going aggressive with pricing, the commission investigating, the supply and demand, it all contributes to the price of the fuel.
"We always try to remain consistent and our prices are always in the lowest in the area. We are hoping to see another drop coming soon rather than an increase.
"Especially ahead of Winter and the colder months, we would like to see a drop in the price of oil, so that it would allow us to pass the savings onto our customers as this is the time of the year where money is especially tight."
We looked at the cheapest fuel prices in the region according to petrolprices.com on Tuesday afternoon.
Total Energies, Blakenhall Service Station, Dudley Road, Wolverhampton - 146.5p
Tesco Cradley Heath, Foxoak Street - 146.9p
Asda Wolverhampton, Jack Hayward Way - 147.7p
Asda Tipton, Wednesbury Oak Road - 148.7p
Asda Brierley Hill, Pearson Street - 148.7p
Sainsbury's Wolverhampton, Raglan Street - 148.9p
Total Energies, Blakenhall Service Station, Dudley Road, Wolverhampton - 149.6p
Asda Oldbury, Wolverhampton Road - 150.7p
Sainsbury's Wolverhampton, Raglan Street - 150.9p
Sainsbury's Oldbury, Freeth Street - 150.9p
Tesco Cradley Heath, Foxoak Street - 150.9p
Asda Brierley Hill, Pearson Street - 151.7p