New evaluation suggests drivers ought to see fuel prices fall from a six-month excessive due to a drop in wholesale prices – if retailers “move on the financial savings they’re benefitting from when shopping for in new inventory”
The RAC mentioned common pump costs ought to come down by a minimum of 6p per litre for petrol and 3p per litre for diesel within the coming weeks if the financial savings are handed on.
Common gas costs have reached 139p per litre for petrol and 146p per litre for diesel.
The RAC believes worth cuts are potential as a result of the price of oil has dropped from above 80 US {dollars} in mid-January to beneath 70 US {dollars}.
“Drivers have needed to endure 5 months of rising costs, so it’s excellent news wholesale costs have fallen considerably, and forecourt totem indicators ought to quickly be reflecting this,” RAC head of coverage Simon Williams mentioned.
“We anticipate retailers to begin to lower costs this week as extra purchase in new provide at decrease costs.
“So long as the price of a barrel of crude oil stays across the 70 US greenback mark, we consider there’s an opportunity drivers might see petrol heading again down in the direction of 130p a litre.
“As at all times in a falling market, a lot will rely on how totally retailers resolve to move on these wholesale financial savings on the pumps.
“The outdated ‘rocket and feather’ saying about costs going up like a rocket and falling like a feather will hopefully be proved improper this time round.”
Watchdog the Competitors and Markets Authority discovered UK drivers paid a complete of £900 million extra for gas at supermarkets in 2022 due to elevated margins and £1.6 billion throughout all retailers in 2023 due to the identical concern.
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