Commenting on the reduction in retail fuel prices announced by some supermarkets today, RAC fuel spokesman Simon Williams said:
“The wholesale price of fuel has fallen in the last fortnight so it’s good to see this being quickly passed on by retailers. We were at the point where motorists should have been starting to feel aggrieved that pump prices were higher than they ought to be. The last thing retailers need is for the public’s trust in their pricing policies to be undermined. We strongly urge other retailers – large and small – to follow suit and bring the price of petrol and diesel down around the country.
“Wholesale prices have come down by 2p a litre as a result of the cost of a barrel of oil reducing to the $50 mark for the last two weeks combined with a boost in the value of the pound against the dollar. Despite oil production cuts implemented by the Organization of the Petroleum Exporting Countries (OPEC) and several other oil producing nations there continues to be a glut of crude oil which is good news for drivers.”
RAC Fuel Watch data shows the combined effect of the physical cost of a barrel of oil being reduced to the $50 mark for the last two weeks and a boost in the value of the pound against the dollar has shaved 2p a litre off the wholesale price. Oil has, in fact, fallen as low as $49 twice in the last eight days of trading.
Ten days ago (13 March) a leading supermarket slashed the forecourt price of its petrol and diesel by 2p a litre. This caused a ripple effect with other retailers cutting their prices and brought the national average price of both fuels down by more than a penny, with unleaded dropping from 120.07p to 118.81p and diesel from 122.05p to 120.89p. The RAC therefore believed there was strong scope for another round of cuts.