Motorists are bracing for a tough period as fuel prices reach new highs, according to a warning from the RAC. Simon Williams, RAC fuel spokesperson, stated: "Drivers are in for a hard time at the pumps."

The price hike comes as the International Energy Agency (IEA) indicates a "significant supply shortfall," following production cuts by Saudi Arabia and Russia. Diesel is expected to rise from its current average of 159p per litre to over 170p. Meanwhile, petrol costs, which stand at £1.55 per litre, could also increase, despite RAC Fuel Watch data suggesting that forecourt prices are already too high. Williams added: "If they were playing fair with drivers, they would be reducing their prices rather than putting them up."

This surge follows a volatile year for fuel prices. Last June, oil prices skyrocketed to more than $120 per barrel due to the Russian invasion of Ukraine. Although prices dipped to just over $70 in May this year, they have started to climb again.

Currently, drivers are paying around 10p more per litre for both petrol and diesel compared to August 1.

But if you're looking to save on your next fuel-up? Here's where you can find the most wallet-friendly petrol and diesel near Shepton Mallet.

Cheapest places to fill your tank:

Texaco Bath (Broadway Garage)

• Distance: 4.96 miles
• Price: 154.9p per litre
• Last updated: 28/09/2023

Gulf Shepton Mallet (Fosse-Way Garage)

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• Distance: 3.1 miles
• Price: 158.0p per litre
• Last updated: 25/09/2023

Tesco Shepton Mallet 1

• Distance: 0.27 miles
• Price: 158.9p per litre
• Last updated: 27/09/2023

BP Wells (MFG Wells)

• Distance: 4.16 miles
• Price: 159.9p per litre
• Last updated: 29/09/2023

Morrisons Wells

• Distance: 4.4 miles
• Price: 161.9p per litre
• Last updated: 28/09/2023

Esso Wells (Wells Service Station)

• Distance: 4.76 miles
• Price: 163.9p per litre
• Last updated: 27/09/2023

Cheapest places to fill your tank:

• Petrol: Asda in Bridgwater offers the lowest price at 144.7p.
• Diesel: Asda in Taunton is your best bet at 147.7p.

Why do the fuel prices vary so much?

The price of fuel mainly depends on the price of crude oil, however there are other factors that contribute to motorists spending more money filling up their cars.

The main driver of petrol prices is how much competition there is and whether there is any competition from supermarkets.

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For example, Taunton has 10 petrol stations in a five-mile radius, including Asda, Morrisons and Sainsbury's, while in Street there is just one petrol station for people to fill up at.

In rural areas petrol stations are also more likely to be run by smaller, independent retailers who have to increase charges to cover their business costs. However, in larger towns and cities the petrol stations are run by big companies like supermarkets that can offer more competitive prices. Supermarket fuel stations are typically 3-4p per litre cheaper than the UK national average fuel price.

Supermarkets are also more likely to lower the rates because they can use motor fuel to promote the rest of their business and attract more shoppers.

There may also be factors that make it more expensive to run a filling station, such as being in a remote area (which makes deliveries marginally more expensive) or a particularly expensive area.

Motorway service stations tend to charge higher prices because motorists have to use them unless they are prepared to leave the motorway.