1. Richard Edgar

Why is the price of petrol increasing?

There are a lot of things pushing up the prices of petrol. Paradoxically it might be one of the things the Bank of England is doing to try and stimulate the economy, which is partly to blame.

The reasons behind the increase in oil price. Credit: ITV News

We know that it is mulling more quantitative easing (QE) and one of the side effects of QE is to weaken the pound against other currencies.

The pound has lost about a tenth of its value against the US dollar since last spring.

Oil is priced in US dollars, so that means it is more expensive for us Brits to buy it. At the same time the actual price of oil has risen sharply in the first six weeks of this year, that is partly to do with Middle East unrest and problems in Iran.

That has been building up into wholesale prices which are yet to feed through to the forecourts, which means more pressure yet to come for the companies that use fuel, like haulage companies and also hard-pressed motorists.