The average price of unleaded petrol dipped by 2.4p to 147.88 pence per litre (ppl), which adds up to £1.30 saved for filling up a full tank.
After being named the priciest place in Europe, diesel in the UK fell by 4.5p to 153.58ppl, as data from RAC’s Fuel Watch shows.
For motorists looking to fill up in supermarkets, petrol prices fell by half the rate compared to the rest of the pumps in the UK – creeping down by 1.2ppl to 146.15ppl.
Diesel reductions in supermarket forecourts decreased by 3.4ppl to 151.49ppl.
The cheapest supermarket, on average, to fill up your tank is Morrisons, which charges an average of 147.4ppl for unleaded petrol and 150.4ppl (tied with Tesco) for diesel.
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‘Still huge disparity in wholesale and pump costs’
While it is the first time prices have gone into reverse since January, the attention on retailers’ profit margins remains under the sharp focus of motoring services.
That has continued following the recent price reports, and the RAC believes there is still “a huge disparity between wholesale prices and what drivers are charged”. Last month, the RAC said the major retailers were refusing to lower their fuel prices to protect their huge margins.
Currently, the ‘big four’ supermarkets – Morrisons, Tesco, Asda and Sainsbury’s – are profiting by an average of 13ppl for petrol and 16ppl for diesel.
Further, depending on where you live, you could be paying wildly different amounts to fill up your car, as motorists face a postcode lottery in the UK.
The cheapest nation in the UK for unleaded petrol remains Northern Ireland, which has petrol on sale for an average of 142.32ppl. That’s around 9p cheaper than the 151.13ppl charged on average in Greater London and the 151.06ppl drivers have to stump up in the East of England.
Meanwhile, there could yet be hope for drivers wanting some light relief, as on 24 May, the Competition and Markets Authority (CMA) received new powers to monitor and scrutinise the prices at forecourts.
Price cuts are ‘too little too leisurely’
Despite the slight reductions, Rod Dennis, RAC senior policy officer, believes “the sheer time it is taking for any meaningful price reductions to reach forecourts is – if anything – a continuing cause of concern”.
Dennis said: “When it comes to much-needed pump price cuts, it’s sadly a case of too little, too leisurely, with most drivers still getting a miserable deal every time they fill up. We’re once again in classic ‘rocket and feather’ territory, with pump prices only trickling down when they should really be falling like a stone.
“What’s more, not only have wholesale prices been coming down consistently for over a month, but the average margins taken by retailers are still so much bigger than in the past.
“This means pump prices are at levels much higher than we ought to be seeing, which is all the more concerning given drivers are meant to still be benefitting from a 5p a litre duty cut introduced more than two years ago.”
He thinks whoever is victorious in the general election on 4 July has “a prickly job” of deciding what to do about the supposedly temporary cut in fuel duty.
Dennis added: “Looking at the UK’s current pump prices, it’s easy to forget this cut is meant to ease the cost of refuelling right now. As a result of the energy price crisis, many governments across Europe have since increased their duty rates again after previously helping drivers.
“Yet in the UK, diesel prices are still higher than anywhere else on the continent, and petrol prices are still among the top 10 most expensive.”
