What's next for UK petrol and diesel prices? RAC commentary

Commenting on the fall in the oil price which is once again putting pressure on UK retailers to cut pump prices, RAC fuel spokesman Simon Williams said:

“The oversupply of oil continues to suppress the barrel price and it’s clear now that plans by some of the world’s largest oil-producing nations to limit production haven’t yet been enough to lift the price – there’s currently too little demand for oil in the first place.

“It’s right that retailers charge a fair price for fuel that reflects the price of the raw product, and right now petrol prices really should be falling below £1 per litre if the lower wholesale costs were reflected at the pumps. The price of diesel should also be coming down to near the £1 per litre mark. But at the same time people are driving very few miles so retailers are selling vastly lower quantities of petrol and diesel at the moment, and means many will be thinking twice before trimming their prices any further.

“If the largest fuel retailers do decide to make another price cut, this will heap yet more pressure on smaller forecourts, many of whom may already be finding conditions tough with sales having fallen off a cliff since lockdown. These forecourts provide a vital service in areas where the supermarkets don’t have a foothold so it would be bad news all round if many were to shut up shop for good.”