Oil prices are expected to rise in 2017
Following the planned oil production cuts agreed between the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC members in November 2016, the price of oil significantly increased. Despite the fall of the price of Brent crude on the 3rd of January 2017, mototrists are still paying an extra 15p a litre compared to the previous year, according to the Guardian.
In fact, the price of petrol is now the highest since December 2014 and diesel reaches similar level as in July 2015. Official data in the United Kingdom showed that higher prices affected the way drivers spent in November, as annual growth in fuel sales was the slowest in almost two years.
Given the weakening of the pound and the rise of the oil price, economists predicted the likelihood that inflation could rise to 3%. Consequently, drivers in the United Kingdom should now expect a rise on their fuel price boards in 2017.