The call to reduce the cost of petrol and diesel at the pumps comes from motoring organisation the RAC.
The average price of a litre of unleaded was 116.76p, with diesel at 118.64p, on 9 November 2016. Yet over the two and a half weeks preceding this, wholesale prices dropped by 4p.
The RAC is now urging garages to lower the cost of petrol and diesel to reflect the fall in wholesale prices. It wants a price cut of at least 3p per litre on both fuels – lowering the averages to under 114p for petrol and 116p for diesel.
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The drop in wholesale costs is due to a slight recovery in the value of the pound and a fall in the cost of oil. October saw the biggest rise in petrol prices in the UK in three and a half years, so a drop in prices at the pumps would be welcomed by motorists.
The call comes amid OPEC’s planned production cut to crude oil output. A meeting is scheduled for 30 November, but any proposed changes would not take place until next year. This means retailers can expect a prolonged period of low oil prices.
An RAC spokesperson said falling wholesale prices should be “good news for motorists” and called for retailers to continue their recent record of passing on price falls to the forecourt.
Fuel spokesman Simon Williams said: “Fears are looming that OPEC’s planned production cut won’t come to fruition and consequently won’t stem the over-production of oil that has kept prices low.
“The effect of that has been a short, sharp fall in the oil price.
“Consequently, we are now looking to retailers to cut their forecourt prices and save drivers money when they next fill up.”
He continues: “We are very surprised retailers haven’t reduced their forecourt prices in the last week as they have a good recent record of passing on wholesale price savings at the pump.
“A logical conclusion is that retailers are taking advantage of the current climate, which has led people to think that higher fuel prices are an inevitability simply because of the weaker pound and talk of the rising cost of goods. A petrol and diesel cut by retailers now will send the right message to consumers that they can still benefit when wholesale fuel prices fall as they have done in recent days.”