How to beat any fuel cost hikes

If violence and disruption overseas push up oil prices and make refueling your auto even a lot more pricey, there’s lots you can do to defend your pocket.

We’ve got 6 funds-savings ideas below. But first, what’s in the pipeline for fuel prices.

Pump it up

Fuel pump costs could shoot up by 4p a litre if oil organizations pass on cost hikes brought on by the recent violence in Iraq.

That is the message from service station retailers, which are at present selling petrol at an average price tag of about 130p a litre and diesel at 136p.

Brian Madderson, chairman of the Petrol Retailers Association, said: “We could see one more 2p added initially and then, more than the next couple of weeks, perhaps 3p or 4p.”

So let’s take a closer look at what’s going on and how it might have an effect on you.

And we’ll round off with our best tips for cutting down on the fuel you use.

What’s happening to oil rates?

Oil prices have spiked to 9-month highs due to concerns about provide from Iraq, which accounts for about 4% of international oil production.

A wave of violent strikes by Islamic State in Iraq and al-Sham (ISIS) rebels, who have seized several towns, have thrown the nation into turmoil.

This week, there are reports the insurgents have taken control of a significant refinery at Baiji.

Even though the bulk of the country’s oil comes from the south, which has been largely unaffected by the attacks so far, fears about future oil supply problems pushed the value of a barrel of Brent crude oil up to around $ 116 (£68) earlier this week.

Analyst Capital Economics even warned that the value could soar to $ 140 a barrel if Iraq’s production of 3.3 million barrels a day have been substantially disrupted.

The good news, nonetheless, is that the oil price tag has now fallen back to about $ 113, although major oil exporters body OPEC has claimed that oil provide from Iraq has so far been unaffected by the crisis.

What does this mean for petrol costs?

Rising oil costs can have a massive effect on how significantly motorists spend for fuel.

In the previous, oil supply troubles brought on by war and terrorism have added up to 10p to the price tag of a litre of petrol.

And even the 4p hike getting predicted by the Petrol Retailers Association could up the price of filling up by between £1.60 and £2.60 a time, depending on the size of your car.

Not everyone thinks petrol rates will spike as a outcome of the Iraq crisis, although.

“Barely a penny went on the value when difficulties in Syria pushed the oil price tag up to the very same level final year,” an AA spokesman said. “We are not predicting doom and gloom.”

Crude pricing

There are even calls for fuel retailers to cut the value of diesel, which is presently 5p to 6p a lot more high-priced than petrol despite wholesale costs getting at a comparable level for each sorts of fuel.

Simon Williams, the RAC’s fuel spokesman, said: “Diesel rates are higher than they truly require to be.

“There has been talk of the fuel retailers using larger diesel prices to hold petrol costs reduce, but no matter whether or not that’s the case, the simplest way to operate need to be to make confident retail rates often reflect wholesale rates proportionately.”

7 approaches to squeeze the most out of your tank

1. Discover the cheapest pump

Tap your postcode into PetrolPrices.com and you will get prices for petrol stations in your area so you can head to the least expensive (you get the specifics following signing up to the service, which is cost-free).

It is worth noting, though, that differentials have dropped dramatically in areas exactly where supermarkets have forced independent retailers to close. In the SG14 postcode, east of Stevenage, the website highlighted 6 forecourts inside 5 miles but the difference between the highest value for petrol per litre (132.9) and the lowest (131.9) was just a penny.

And if you’re only saving a penny a litre, it’s self-defeating to drive out of your way.

2. Check out supermarket gives

Supermarket promotional gives such as these available from Tesco and Sainsbury are worth exploring – the web sites are worth checking out for particulars.

Provides are typically dependent on regular purchasing, so you’ll want to choose how loyal you want to be to a specific brand, and whether your regional branch sells fuel.

3. Play your cards right

If you stick your fuel on your credit card, make every effort to pay off the balance every month to avoid racking up interest charges.

And maintain an eye open for cards that provide cashback and rewards, such as Santander’s 123 credit card for instance. This pays 3% cashback on every petrol bill up to £9 a month (along with a raft of cashback bargains on other spending). But you’ll require to factor in the card’s £24 annual charge.

4. Drive smoothly and conservatively

Speedy acceleration, sharp braking, staying in low gear and driving rapidly will all burn fuel more rapidly than if you drive with moderation.

Undertaking 70mph as an alternative of 80mph (as you need to do on the motorway, natch) cuts fuel usage by 10%. You could save a additional 10% by dropping down to 60mph.

5. Do not be idle

If you are idling for any length of time, turn off the engine.

6. Preserve tyres inflated

Under-inflated tyres develop far more friction with the road surface, which means the engine has to function tougher to make them do the exact same operate as fully inflated ones.

Verify your tyres every single couple of weeks and every time you embark on a lengthy journey. Inflated tyres are safer, too, in terms of grip, cornering and braking.

7. Drop weight

Jettison the roof box and rack if not in use and take heavy products out of the boot. The enemies are wind resistance and weight, which each serve to drain the tank prematurely.

Have we missed any wonderful fuel-saving tips? We’d enjoy you to share your expertise and knowledge in the box beneath.

How to beat any fuel cost hikes