U.K. Fuel Prices Rise Most Since July Amid Fuel Shortages

(Bloomberg) --

U.K. gasoline prices rose the most since early July in the last week as fuel shortages persisted. 

Pump prices rose by 0.91 pence per liter to 136.10 pence on Oct. 4, their highest level since September 2013, according to figures published Tuesday by the Department Business, Energy and Industrial Strategy. The price of diesel climbed 1.25 pence compared with Sept. 27 to 139.20 pence. 

The increases came in a week that saw motorists queue for hours in order to fill up. The crisis, triggered by a shortage of delivery drivers, has led to the government sending in army personnel to get fuel to stations.

While there are some signs of improvement, queues remained common in London and the Southeast, with some stations still out of petrol.

Rising fuel prices threaten to add further impetus to inflation, which the Bank of England expects to exceed 4% by the end of the year -- more than double its target. Policy makers have said they are ready to tighten policy should price rises become entrenched.

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