New analysis suggests drivers should see fuel prices fall from a six-month high because of a drop in wholesale costs – if retailers “pass on the savings they are benefitting from when buying in new stock”
The RAC said average pump prices should come down by at least 6p per litre for petrol and 3p per litre for diesel in the coming weeks if the savings are passed on.
Average fuel prices have reached 139p per litre for petrol and 146p per litre for diesel.
The RAC believes price cuts are possible because the cost of oil has dropped from above 80 US dollars in mid-January to below 70 US dollars.
“Drivers have had to endure five months of rising prices, so it’s good news wholesale prices have fallen significantly, and forecourt totem signs should soon be reflecting this,” RAC head of policy Simon Williams said.
“We expect retailers to start to cut prices this week as more buy in new supply at lower prices.
“As long as the cost of a barrel of crude oil stays around the 70 US dollar mark, we believe there’s a chance drivers could see petrol heading back down towards 130p a litre.
“As always in a falling market, much will depend on how fully retailers decide to pass on these wholesale savings at the pumps.
“The old ‘rocket and feather’ saying about prices going up like a rocket and falling like a feather will hopefully be proved wrong this time around.”
Watchdog the Competition and Markets Authority found UK drivers paid a total of £900 million more for fuel at supermarkets in 2022 because of increased margins and £1.6 billion across all retailers in 2023 because of the same issue.
