Household Bills
Petrol retailers told to ‘send right message’ to drivers and cut pump prices
The RAC is calling on fuel retailers to cut pump prices to reflect the fall in the cost of oil, and the weakening value of the pound.
The average price of a litre of unleaded stood at 116.76p, while diesel was 118.64p yesterday according to the RAC’S fuel watch data.
Despite wholesale prices having fallen by 4p in the last two weeks, the RAC says the average price of both petrol and diesel have actually slightly increased, by a third of a penny.
As such, it says there is scope for forecourt prices to be cut by at least 3p.
This would bring the average petrol and diesel prices down to under 114p and 116p respectively.
But for the most competitive fuel forecourts, such as supermarkets and some independents, the RAC believes passing on the cut could see motorists pay closer to 110p a litre for unleaded and 112.5p for diesel.
The ‘flash crash’ of the pound that occurred at the start of October, coupled with the oil price that rose through much of the month, has been pushing up the price of fuel.
In fact, motorists were hit with the highest petrol price rise in October than at any time since February 2013.
But the recent fall in the cost of oil, and slight recovery in the value of the pound, is cancelling out some of October’s rises.
RAC fuel spokesman Simon Williams said: “Fears are looming that OPEC’s planned production cut, due to be agreed at the end of November, won’t come to fruition and consequently won’t stem the over-production of oil that has kept prices low. The effect of that has been a short, sharp fall in the oil price, down from more than $50 a fortnight ago to around $43 now.
“This, combined with a rallying pound following last week’s High Court case on Brexit and the result of the US election, is causing wholesale prices to fall – which should be good news for motorists.”
Williams said he was very surprised retailers hadn’t reduced their forecourt prices in the last week, adding that they’re taking advantage of the current climate.
“This current unwillingness to cut will not help their cause in getting motorists to believe that forecourt prices don’t go up like a rocket when wholesale prices rise and fall like a feather when they’re coming down. A petrol and diesel cut by retailers now will send the right message to consumers that they can still benefit when wholesale fuel prices fall as they have done in recent days.”
