Petrol prices could be cut as wholesale prices fall

Pump prices have continued to reach record highs, with a litre of petrol, on average, reaching 189.33p and diesel hitting 197.11p on Tuesday (June 21).

However, the RAC says that falling wholesale costs should see forecourt prices beginning to fall for petrol at least.

RAC fuel spokesman Simon Williams said: “Just as more people took to their cars on the first day of the rail strikes the average price of petrol increased (on Tuesday) to 189.33p, taking a full tank over the £104 mark (£104.13).

“Diesel also reached another new high at 197.11p putting it perilously close to the £2-a-litre milestone. A full fill-up of diesel for a 55-litre family car now costs on average £108.41.

“But with the oil price falling and wholesale costs down over the last week, pressure is mounting on the biggest retailers to turn the tide and put petrol pump prices into reverse.

“It now seems we’ve reached the current petrol peak, so we expect to see the big four supermarkets start to cut their prices.”

Williams says that as they dominate UK fuel retailing this should lead to others reducing their prices too which will benefit drivers everywhere.

The situation with diesel is different, however, as wholesale prices last week still put it on course to move closer towards an average of £2 a litre. If oil continues to trade lower though, it could just prevent this from becoming a reality.

Fleet News has teamed up with Allstar to bring you the fuel prices locator.

Average pence per litre and per gallon petrol and diesel fuel prices in the UK regions includes England, Scotland, Wales and Northern Ireland. To access the fuel prices, click here.