Fuel prices fall to lowest level since mid-May

Fuel prices fall to lowest level since mid-May as litre of petrol plummets to 165.5p and diesel to 181.1p but RAC says supermarkets are refusing to pass on savings to customers

  • Figures show prices are the lowest since May 16, as wholesale prices dropped
  • This is according to the Department for Business, Energy and Industrial Strategy 
  • Simon Williams from RAC said while good news, prices should have fallen more
  • He said supermarkets are refusing to pass on savings to their customers

Fuel prices have fallen to a four-month low but the RAC said supermarkets are refusing to pass on savings to their customers.

Figures published by the Department for Business, Energy and Industrial Strategy show a litre of petrol cost an average of 165.5p on Monday, while diesel was 181.1p per litre.

They are the lowest prices at UK forecourts since May 16, coinciding with a fall in wholesale costs due to a drop in oil prices.

RAC fuel spokesman Simon Williams said: ‘While this is clearly good news, prices should have fallen much further than they have due to the big reduction in the cost of wholesale fuel this summer.

‘The main reason this hasn’t happened is that the big four supermarkets, which dominate UK fuel sales, have refused to pass on savings.’

Figures published by the Department for Business, Energy and Industrial Strategy show a litre of petrol cost an average of 165.5p on Monday, while diesel was 181.1p per litre

The highest average fuel prices for the year so far were recorded on July 4, when petrol was 191.6p per litre and diesel was 199.2p per litre.

Since then, the cost of filling up a typical 55-litre family petrol car has been cut by more than £14, while refuelling diesel models costs nearly £10 less.

AA fuel price spokesman Luke Bosdet said: ‘Although the fall in pump prices has slowed in recent weeks, they continue to trickle down steadily.

‘This was to be expected as the end of the US summer motoring season eases the pressure on gasoline demand and therefore reduces the wholesale price of petrol in this country.

‘At UK street level, petrol prices around 155p a litre are beginning to appear again.’

Mr Williams added: ‘Average margins are now 19p a litre – 12p more than the long-term average. Petrol should really be on sale for 153p a litre and diesel 175p.

‘We hope the Competition and Markets Authority is watching what’s happening closely.’

Despite the fall in prices, a new survey indicates that 50% of UK drivers are cutting back their car usage to save money.

The poll of 2,807 people commissioned by automotive classified advertising business Auto Trader suggested that motorists in north-east England are most likely to be reducing their mileage, at 56%.

Some 68% of respondents from across the UK said they plan to sacrifice eating out in favour of filling up their vehicle.

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