Petrol prices on the up as cost of crude oil continues to rise

Drivers across the globe are being hit by petrol price increases as the cost of crude oil continues to rise.

In the UK petrol prices have soared to a two-year high in a punishing setback for millions of drivers.

The average price of unleaded is now 117.9p a litre, up from 102.69p a year ago. This is the highest since December 2014, according to the AA.

It costs nearly £8.40 more to fill up a typical family car than it did a year ago and experts believe there could be worse to come with some suggesting that petrol prices could hit 130p a litre in the coming weeks.

The South African Department of Energy has announced that the retail price of 93 octane shall rise by 50 cents per litre and 95 octane by 48 cents a litre on 4 January.

The change in price can be attributed to the increasing crude price as well the Rand strengthening against the dollar.

In Mexico protests have erupted across the country. Roads and stations have been blocked and drug cartels have threatened to blow up gas stations.

The price increase is part of a price-liberalisation scheme that was part of the landmark energy reform passed in 2013, which President Enrique Peña Nieto told his countrymen would "generate more energy, more cheaply for all Mexicans.

India saw fuel prices rise by Rs 1.29 per litre on 1 January, the third increase in a month.

Indian Oil Corp (IOC) sais in a statement: "The current level of international product prices of petrol and diesel and Rupee-US Dollar exchange rate warrant increase in selling price of petrol and diesel, the impact of which is being passed on to the consumers with this price revision."

Planned production cuts by Opec members and non-Opec countries have pushed the oil price higher in recent weeks, though the price of Brent crude fell back slightly in Tuesday trading.