MOTORIST JOY: Fuel prices set to drop from six-month high as wholesale costs fall
Motorists could see fuel prices drop in the coming weeks as wholesale costs fall from a six-month high, according to RAC Fuel Watch data.
If retailers pass on the savings from lower wholesale prices, petrol should come down by at least 6p per litre, with diesel falling by around 3p. Current average prices stand at 139p per litre for petrol and 146p for diesel.
The price drop follows a decline in oil costs, which have fallen from over $80 per barrel in mid-January to just under $70. Over the past week, a barrel has averaged $69, the lowest sustained level since August 2021.
If oil remains around the $70 mark, the RAC suggests petrol could drop further towards 130p per litre, with diesel potentially falling to around 140p. Northern Ireland, where retailer competition is strong, is already seeing lower prices, with petrol averaging 133p and diesel 139p – significantly below the UK average.
The extent of the reductions now depends on how quickly retailers reflect these lower costs at the pump.
Simon Williams, RAC Head of Policy, said: “Drivers have had to endure five months of rising prices, so it’s good news wholesale prices have fallen significantly, and forecourt totem signs should soon be reflecting this.
“We expect retailers to start to cut prices this week as more buy in new supply at lower prices. As long as the cost of a barrel of crude oil stays around the $70-mark we believe there’s a chance drivers could see petrol heading back down towards 130p a litre.
“As always in a falling market, much will depend on how fully retailers decide to pass on these wholesale savings at the pumps. The old ‘rocket and feather’ saying about prices going up like a rocket and falling like a feather will hopefully be proved wrong this time around.”
