Things are about to get worse with the cost of living crisis, which is primarily being driven by energy costs. Brent crude, the international benchmark, hit $120.50 a barrel, up 1 per cent ahead of the July contract’s expiry on Tuesday. The fall back in the price was temporary and is now the highest price for the last two months. This means petrol and diesel prices are likely to move up even higher than they already are in the UK and reach new record prices.

As the summer months get underway, demand for petrol and diesel ramps up for the holiday season – and projections so far see no reductions against pre-pandemic years.

Lingering concerns over supplies from Russia have not helped.

US benchmark West Texas Intermediate rose by a similar amount to more than $116 a barrel. The rally in crude oil comes as supplies of refined products, such as gasoline, remain tight at major delivery hubs at a time when demand is expected to pick up steam in many countries, including the US

The gas oil contract in Europe, a proxy for diesel and other distillates, is trading close to record levels near $1,200 a tonne. Motorists in many countries are now paying record prices at the pumps for diesel and petrol despite crude being well below its all-time high of $147.50 a barrel, which it hit in 2008.

Lower exports of diesel from Russia, have tightened markets even more so than crude.

The Opec+ group have not responded to these price hikes and has refused to accelerate oil production increases. The group meets this Thursday and is widely expected to stick with its plan of raising production by about 400,000 barrels a month, a target that has been in place since last year. Under these pressures, plus the Russia/Ukraine war, inflation more widely – petrol and diesel prices do not look like they will retreat any time soon.