Hope for fuel price cuts amid oil market downturn

Date: Tuesday, November 3, 2020 | Author: Sean Keywood

UK fuel prices should fall by up to 5p per litre within the next two weeks, according to the RAC.

The organisation has published its latest monthly price report, which shows that while average diesel prices fell during October by just 0.27p per litre to 117.82p, and petrol prices fell by 0.1p to 114.43p, the wholesale prices for both fuels were down by 4.62p.

The RAC says this wholesale fall is due to lower oil prices – attributed to ongoing concern about global demand amid the second wave of the coronavirus pandemic – and that this should in turn herald lower prices at the pumps.

RAC spokesman Simon Williams said: “It’s likely to be a case of déjà-vu for drivers this month as once again fuel prices are starting to fall just at the point when we’re all driving less as a result of a coronavirus lockdown.

“While we’re not expecting prices to go as low as last time – March saw petrol prices under £1 a litre as a result of oil prices falling to a 21st century low – any driver needing to fill up later in November should be greeted by the sight of lower prices, if retailers do the right thing.”

Williams said it remained to be seen to what extent retailers would pass on the wholesale price cuts.

He said: “While the volume of fuel sold in the coming weeks is likely to be lower than of late, we’re concerned some retailers may only choose to only cut by a few pence, or not at all, which would be bad news for drivers, especially as we don’t anticipate the roads will be as quiet as during the first lockdown.

“Diesel drivers in particular have reason to feel particularly hard done by, as arguably they have been paying over the odds for the fuel for two whole months now. We strongly urge retailers to lower the price of diesel.”

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