Fuel prices ‘starting to fall’ with costs set to drop by 5p per litre in just two weeks
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Fuel prices have remained unchanged for the second month running with petrol down from 114,53p at the start of the month to 114.43pence. However wholesale prices dropped 4.62pence to just 82.26p through October which the RAC warns should bring in lower prices at forecourts.
They praised Asda who has been the first major retailer to reduce costs, cutting two pence per litre off petrol and three pence off diesel.
The supermarket chain is charging no more than 108.7opence for petrol and no more than 111.7p on diesel.
RAC fuel spokesman Simon Williams has urged other retailers to follow their early move and reduce costs across their stations.
He added that drivers needing to fill up after this month “should be greeted by the sight of lower prices” if retailers do the right thing”.
He said: “It’s likely to be a case of déjà-vu for drivers this month as once again fuel prices are starting to fall just at the point when we’re all driving less as a result of a coronavirus lockdown.
“It’s good to see Asda leading the way this morning with an initial price cut and we now need other retailers to follow suit as quickly as possible.
“While we’re not expecting prices to go as low as last time – March saw petrol prices under £1 a litre as a result of oil prices falling to a 21st century low – any driver needing to fill up later in November should be greeted by the sight of lower prices, if retailers do the right thing.
“It remains to be seen, however, to what extent retailers pass on the wholesale savings they have been enjoying recently to drivers.”
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The RAC believes that fuel has been overpriced for almost two months after the wholesale price of diesel was below petrol costs.
Wholesale diesel costs fell 4.62p in October as pump prices remained significantly higher than petrol.
The RAC says that the cost of filling-up a 55-litre family car with petrol is now £2.65 less than the average.
Average diesel costs have fallen by £2.24 with drivers set to spend £62.56 to fill up their vehicles.
RAC Fuel Watch has predicted that costs were “very likely to come down” for diesel, unleaded and super unleaded vehicle owners.
Mr Williams added that they were still concerned that retailers may cut costs by just a few pence or not at all.
He said this would be “bad” before adding that diesel drivers have reason to feel “hard done by” as drivers pay over the odds to fill up.
Mr Williams said: “While the volume of fuel sold in the coming weeks is likely to be lower than of late, we’re concerned some retailers may only choose to only cut by a few pence, or not at all.
“Which would be bad news for drivers, especially as we don’t anticipate the roads will be as quiet as during the first lockdown.
“There is perhaps a cruel irony for motorists here in that the route to cheaper prices is cheaper oil, yet the main reason the oil price is lower is because so many of us across the world aren’t travelling.
“Diesel drivers, in particular, have reason to feel particularly hard done by, as arguably they have been paying over the odds for the fuel for two whole months now.
“We strongly urge retailers to lower the price of diesel, both for businesses and the country’s 12m-plus diesel car drivers.”
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