RAC says sterling's strong performance is protecting us slightly from rapid hikes.

Prices of petrol and diesel hit a three-year high after rising by more than 2p per litre in November, according to data from the RAC.

At the end of November, the average litre of unleaded petrol cost 120.78p per litre – up 2.35p from the beginning of the month – while the average diesel price rose 2.22p to 123.18p per litre.

The price hike came as the result of rising oil prices, which have stayed above $60 (£44.74) a barrel for the entirety of November.

Such high oil prices are largely down to the Organisation of the Petroleum Exporting Countries (OPEC) cutting production in a bid to keep prices buoyant.

Just last month, the RAC said increasing petrol wholesale price would ‘inevitably’ be passed on to consumers.

However, the organisation says that currency values have kept prices from inflating too dramatically.

RAC fuel spokesman Simon Williams said: ‘Even though the oil price is now consistently above $60 a barrel, the increased value of sterling against the dollar is helping to keep fuel prices down at the pumps. This is good news for motorists as it means petrol and diesel prices are unlikely to shoot up, and we may even see them come down very slightly in the next week or so.

‘The price we will pay for fuel at the pump into 2018 very much hinges on how effective OPEC’s production cut continues to be in reducing the global glut of crude oil. The increased barrel price this is designed to create may also work against the group as it makes fracking for oil in the US more financially viable, which in turn may lead to America increasing its production and filling the gap from the cuts. If this happens it should mean forecourt prices won’t go shooting up.’

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