You are here: Home - Household Bills - News -

Petrol prices fall by 11p a litre but ‘savings should be bigger’

Written by:
Petrol prices fell by 11p a litre in the last month, but retailers could be passing on larger savings to motorists, the AA says.

Average UK petrol pump prices have fallen from 121.28p a litre in mid-March to 110.40p this week, while average diesel prices have dropped 8.36p in the same period, from 124.00p to 115.64p.

However, the wholesale cost of fuel has fallen further, and the AA calculates petrol prices should be around £1 a litre, once fuel duty and VAT have been taken into account.

Since the first week of March, the price of oil has plummeted from above $50 a barrel to between $30 and $25.

Luke Bosdet, the AA’s fuel price spokesman, said: “Those representing the retailers say that pump prices need to stay high in the lockdown to compensate for lower sales volumes and avoid forecourt closures.”

Around 100 petrol filling stations across the UK have closed as a result of the coronavirus pandemic, according to the Petrol Retailers Association.

The AA also found variations in pump prices across the country, with a tank of fuel costing £3.50 more in some rural parts of the UK than more populous regions.

Bosdet said: “It is likely that once Covid-19 is defeated there will be calls for a review of UK pump prices during the current oil and commodity fuel price crash, as there were in the years after the 2008 to 2012 price spikes.

“One of the questions will be whether it is purely coincidental that Northern Ireland with an effective consumer watchdog has the lowest pump prices in the UK?”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Fraudsters target victims with fake government emails and texts

Criminals are using the Covid-19 pandemic to defraud innocent people, according to Action Fraud.