Petrol prices tipped to fall by 6p per litre

Drivers can expect to see the prices of petrol and diesel ease significantly at the pumps in the next few weeks, thanks to a sustained fall in the price of oil traded on the global market.

Fuel prices are currently at a six-month high, but according to RAC Fuel Watch, falling wholesale costs should filter through to the pumps soon, with prices estimated to fall by at least 6p per litre for petrol and 3p a litre for diesel. 

The data shows pump prices are currently averaging 139p and 146p per litre respectively, and price cuts should follow a weakening of the globally traded oil price from more than $80 per barrel in mid-January, to less than $70 now, the RAC says. It’s the first time the oil price has been sustained at such a low level since August, and the organisation predicts petrol pump prices could be heading towards 130p per litre if the global oil market remains static.

“Drivers have had to endure five months of rising prices, so it’s good news that wholesale prices have fallen significantly, and forecourt totem signs should soon be reflecting this,” says RAC head of policy Simon Williams. However, he warns that much will depend on how quickly and fully UK filling stations decide to pass on their savings. “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,” he says.

However, the Competition and Markets Authority (CMA) watchdog has been scrutinising fuel retailers closely in the past few years, and the RAC points out that its last report in November expressed concern about a lack of intensity of competition in the market. The CMA’s next report is due later this month.

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