RAC calls for further fuel price reductions

RAC calls for further fuel price reductions
The RAC is warning major retailers not to use the General Election as a distraction, and to pass on fuel price cuts to UK drivers.

Wholesale costs have again fallen following a sudden drop in the price of oil, meaning retailers – particularly large supermarkets which enjoy the lowest costs – have the opportunity to reduce forecourt charges by up to 4p a litre, the RAC says.

In urging supermarkets to lead the way, Fuel Spokesman Simon Williams says he “sincerely hopes” retailers aren’t banking on the nation having their mind on other things, ahead of Thursday’s national vote.

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Earlier this week, the RAC reported how May brought about a 2.5p cut in the price of a litre of diesel and a 2p reduction in petrol.

But since the start of June, oil has plunged below the $50 a barrel mark and stayed there, bringing about further substantial cuts to the wholesale cost of both diesel and petrol.

The RAC points out the potential for petrol to be cut by 2p a litre, and diesel by up to 4p – bearing in mind the latter could have already been cut in light of previous wholesale savings.

Simon Williams says: “We have been monitoring supermarket fuel prices closely since the oil price began to tumble hoping that we would see them come down, but sadly that has not happened yet. In fact, one even increased prices by half a pence a litre.

“The cost of a barrel of oil fell to $47.15 on Wednesday – the lowest price since early May – contributing to a 2p a litre reduction in the wholesale price of petrol since 24 May. In the same time period the price of wholesale diesel has come down by more than 3.5p a litre.”

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Mr Williams points out that the average price of unleaded petrol at the four key supermarkets stands at 113.55p – compared to the national average of 116.49p – but due to the frequent buyer discounts they enjoy, this could come down to nearer 111p a litre.

To an even greater extent, supermarket diesel currently averages out at 114.33p, which should be as low as 110.5p.

“The UK average for diesel is 117.56p a litre which is at least 4p too high which suggests non-supermarket retailers are charging more for diesel than they should be,” Mr Williams said.

“We sincerely hope the reason that retailers have not passed on savings in the wholesale price to motorists at the pumps this week is nothing to do with them thinking that people are distracted by the General Election.”

Copyright Press Association 2017. Motoring News articles do not reflect the RAC's views unless clearly stated.