‘At least’ another 15p expected to be knocked off petrol and diesel prices in weeks

‘At least’ another 15p expected to be knocked off petrol and diesel prices in weeks

The latest AA Fuel Price Report shows that on Tuesday, petrol across the UK averaged 172.88p a litre. That is 18.65p lower than the 191.53p record set more than six weeks ago on July 3.

That is a saving of £10.26 off the cost of filling the typical 55-litre car tank.

For diesel, which averaged 183.74p a litre on Tuesday, the price fall has been around 12.5p over a month and 15.33p since the 199.07p record on July 1.

That has cut the cost of filling an 80-litre tank on a large van by £12.26. 

A 15p fall in the pump price of petrol between mid-July and mid-August has brought much-needed relief for the UK’s beleaguered drivers. 

READ MORE: Drivers warned of one button as it boosts ‘fuel consumption by 20%

“Yes, they are paying on average approaching 19p a litre less for petrol and saving nearly £10.30 a tank. 

“But, the fuel is still 37.6p a litre more expensive than a year ago (135.29p). 

“That is still at danger level for young drivers and those with families who we know, from AA research among thousands of its members, have been forced into debt or seeking financial help from friends and family.

“In previous pump price crashes, drivers could reckon on the supermarkets racing to pass on the savings, trying to steal a march on their rivals.”

One of the big differences between this current price crash and previous ones had been the relative reluctance of supermarkets to engage in a pump-price war, until Asda initiated one at the end of July. 

In early 2020, as the price of oil fell, there were three announcements of price cuts by the more competitive supermarkets. 

Now, there is much less appetite to fight for customers on the superstore forecourts.

Asda now has the cheapest average price for petrol among the major retailers at 169.83p, while BP has the most expensive at 176.60.

The same can be said for diesel prices with Asda cutting more than 14p off their prices between last month and this month.

Last week, six fuel stations in Shropshire were identified as selling petrol below 160p a litre, with none of the six being supermarkets.

Mr Bosdet continued, saying: “Now it’s hit and miss whether you live and drive in an area where at least one fuel retailer is prepared to bring down prices as fast as the fall in wholesale costs.

“Once that full 30p-a-litre fall in wholesale petrol costs since June has been passed on, only then can drivers breathe a little easier. 

“The hope then is that, as the US motoring season comes to an end, even more downward pressure will be exerted on petrol costs.”

The one sure thing is that where there is pump price transparency, as in Northern Ireland, the average pump price across a wide area is substantially lower than where there isn’t.

Published at Thu, 18 Aug 2022 23:01:00 +0000