Finally hope for drivers as petrol prices DROP from record highs

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The cost of petrol has dropped by 2.8p a litre from record highs, knocking £1.50 off the price of a tank of fuel. Luke Bosdet, the AA’s fuel price spokesman, said: “Wholesale petrol’s trajectory, if sustained, would lead to savings from the record highs – providing the fuel trade is prepared to pass them on.

“So far this morning, even with oil rebounding, wholesale petrol remains below 80.5p a litre.”

Mr Bosdet added: “The problem is that, in many places, the price cuts are quite simply not happening despite more than six weeks of falling costs.”

The average price for a litre of petrol on Sunday was 188.76p, compared to 196.96 for a litre of diesel.

Retailers have been accused of failing to pass on a drop in wholesale prices for fuel which soared amid the war in Ukraine.

Wholesale petrol that had peaked above £1 a litre on June 1 fell to below 80p a litre for much of last week.

This means as much as a 20p fall from record highs at the pump within two weeks, the AA said.

Greedy oil refineries and retailers will be investigated following record high fuel prices, the Competition and Markets Authority (CMA) said earlier this month.

Sarah Cardell, CMA general counsel, said: “The recent rises in pump prices are a major worry for millions of drivers.”

The cost of filling up a family car recently rose above £100 for the first time ever.

Ms Cardell said: “While there is no escaping the global pressures pushing up fuel prices, the growing gap between the oil price and the wholesale price of petrol and diesel is a cause for concern.

“We now need to get to the bottom of whether there are legitimate reasons for this and, if not, what action can be taken to address it.

“On the whole the retail market does seem to be competitive, but there are some areas that warrant further investigation.”

She said the watchdog will “use our formal legal powers” to investigate pump prices, and “won’t hesitate to take action” if it finds evidence of “collusion or similar wrongdoing”.

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