Fuel costs saw some of their biggest mouthy reactions since the start of 2000, according to analysis from the RAC’s Fuel Watch service. Petrol costs fell by almost 3 pence per litre with petrol dropping by 3.24 pence per litre in the 11th greatest monthly decline since the service began.
Simon Williams, RAC fuel spokesman said: “The oil price has slumped due to the spread of the coronavirus prompting fears of slower global demand.”
“This may well lead to a move from oil producer group OPEC and its allies to restrict production when they stage an extraordinary meeting in Vienna on Friday.
“If they decide to take action to prop up the barrel price it would very likely put an end to falling forecourt fuel prices.”
RAC experts have also called upon retailers to keep cutting due prices to better reflect savings made by fuel providers.
According to the recovery group, the wholesale piece of unleaded dropped below 90p for the first time since January 2019.
Last year, this led to an average fuel pump price of 119p per litre in costs which would be 5p cheaper than current levels.
Wholesale diesel costs fuel to 92p a litre for the first time since August 2017 where forecourt prices were 8 pence cheaper than they currently are.
Simon Williams added: “While it is good drivers are benefiting from lower forecourt prices, in reality the wholesale price is such that the big four supermarkets, which dominate UK fuel retailing, should cut their prices again.
“At the moment both fuels are 6p a litre too expensive which means for petrol we should really be seeing a UK average of 118p.
“Unfortunately, we don’t think diesel will come down to the 2017 price of 119p a litre due to wholesale prices only dropping to 92p a litre briefly as a result of oil suffering its biggest weekly decline in more than four years.”
Motoring experts had predicted fuel costs could fall due to coronavirus as demand for oil would decrease.
Data from the recovery group has revealed the greatest savings can be made at forecourts based in the North East.
Petrol prices were down an average of 3.25 p per litre across the region with diesel savings recorded at 4.56 pence.
Northern Ireland saw the smallest savings with just 2.45p saved off a litre of petrol and 3.75 pence from diesel costs.
Published at Wed, 04 Mar 2020 14:41:00 +0000