UK retailers cut their fuel prices after a reduction in wholesale costs

Motorists in the UK have see fuel prices soar in the last few years. In fact, the cost of petrol and diesel is at its highest since 2014: with it costing an average of £1.28 for a litre of unleaded petrol and £1.32 for a litre of diesel. But, thanks to a reduction in the wholesale cost, a number of major retailers have now cut their prices.

Asda, Sainsbury’s and Morrisons have all lowered their fuel prices for the second week in a row: the diesel has been lowered by 2p a litre and the cost of petrol is down by 1p a litre. Despite being a small reduction, it’s hoped that it will offer some much needed relief for financially stretched motorists, who’ve felt the effects of high oil prices for some time.

RAC fuel spokesman Simon Williams said: “It’s great to see supermarkets passing on savings in the wholesale cost of fuel to motorists who have endured rising prices at the pumps since the end of March. A litre of petrol is now 13p more expensive than a year ago while diesel is 15p dearer so every penny that comes off the forecourt price is very welcome.”

The cost of a barrel of Brent crude is used as an international benchmark for the oil prices. The cost of this has rocketed from less than $50 just a year ago, to nearly $80 last month. The cost has now fallen back down to $73, which has now been passed down to consumers by retailers. However, some campaigners have accused retailers in the UK, and around the world, of failing to fully pass on the savings they’re making to their customers.

A spokesperson for AA fuel prices, Luke Bosdet, noted that UK drivers were still being overcharged at the moment by 2p a litre, or £1 for an average tank of petrol or diesel. “One supermarket has been charging as much as 10p a litre or a fiver a tank more for petrol compared to other sites they own,” he said.

 

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