Average petrol and diesel pump prices down 3p per litre

The RAC is warning that wholesale price increases could very quickly translate into small increases to drivers at the pumps during June.

The average price of petrol and diesel were down 3p per litre (ppl) in May, with unleaded falling below 106ppl, for the first time in more than four years, and the average cost of diesel was down from 114.54ppl to 111.23ppl.

Tesco, Morrisons and Asda – are all selling unleaded for around £1 per litre, while the cheapest diesel can be found for 104.7p at Asda and Morrisons.

RAC fuel spokesman Simon Williams said: “It’s currently cheaper to fill up now than it has been since 2016.

“How long these lower pump prices remain for, however, is debatable and is largely dependent on events taking place thousands of miles away from the UK.”

The world oil price has rebounded, increasing from $15.59 at the start of May to $34.44 a barrel by the end of the month – an 83% increase. Wholesale petrol prices rose by 7p during the course of the month, with diesel up 4.5p.

The RAC believes that if retailers are to continue with the same pricing strategies they employed before the lockdown, these wholesale price increases could very quickly translate into small increases to drivers at the pumps during June.

Williams said: “The impact of the coronavirus on world travel and economic activity has dramatically reduced the global demand for oil, which is forcing major oil producing nations such as Saudi Arabia and Russia to desperately agree production cuts to shore up the barrel price.

“How far they go with these cuts, and how quickly, will be crucial in determining what happens with prices at the pumps over the next few months.

“Last month, as we expected, the oil price began to creep back up. If this continues in June, a rise in the cost of filling up is almost inevitable.”

He urged drivers to fill up when they can to benefit from what are the lowest prices for four years.

“While the impact of the coronavirus is set to be with us for a long while yet, we don’t expect such low pump prices to be,” he said.

Regional fuel price variation

Regional average diesel pump prices

Regional average unleaded pump prices