Fuel prices drop for second month running, but still too high, says RAC

Fuel prices in the UK fell for the second month in a row, according to the latest RAC Fuel Watch report.

However, the reductions were less than anticipated. Petrol prices dropped by 3p per litre, while diesel saw a reduction of nearly 4p.

By the end of June, the average price of petrol across the UK was just under 145p per litre, a decrease from 148p at the start of the month. Diesel prices fell to under 150p per litre, down from 153.74p. This translates to approximately £80 to fill a 55-litre petrol car and £82.57 for the diesel equivalent.

The cost of oil, which began June trading at under $80 per barrel, rose steadily to around $86 by the month's end. This increase pushed wholesale fuel prices up slightly. Despite this, petrol and diesel prices remain high on forecourts across England, Wales, and Scotland.

Drivers in Northern Ireland, however, are enjoying lower prices. Petrol there averages 140.5p per litre, 4.5p cheaper than the UK average. Diesel in Northern Ireland is priced at 142p per litre, 8p less than the UK-wide average.

The RAC's analysis suggests that while there have been reductions, fuel prices are still too high, reflecting the ongoing challenges faced by UK motorists.

RAC Head of Policy, Simon Williams, said: “While it’s good news prices at the pumps have fallen for the second month in a row, this also leaves a bad taste in the mouth because we know drivers in Great Britain are continuing to get a raw deal as both petrol and diesel are still much more expensive than in Northern Ireland.

“This month’s Fuel Watch report also reveals just how expensive fuel is when bought at forecourts owned and run by oil giants Shell and BP. We remain baffled how the very same fuel can be sold for such vastly different prices by the biggest retailers, whether they’re run by supermarkets or the world’s largest oil companies.

“It’s also the case that while oil has increased from under $80 at the start of June to the mid-$80s by the end, wholesale costs are still low enough to merit cheaper prices at the pumps. Looking at the fairer average prices charged in Northern Ireland, petrol should be 4.5p lower across England, Scotland and Wales and diesel should be a whole 8p less.

“We will continue to highlight this disparity, along with the massive differences between major retailers’ high and low prices, to the new government and the Competition and Markets Authority with a view to them being addressed by the new Pumpwatch scheme when it is up and running."