Press release -
RAC calls on fuel retailers to cut prices after oil price tumbles
The coronavirus outbreak in China has led to a sudden drop in the price oil which could lead to lower fuel prices in the UK.
A barrel of crude fell below $60 a barrel last Friday and is likely to fall even further on Monday as the amount of oil used by China – the world’s second largest oil consumer – plummeted due to people restricting their travel plans.
Prior to the outbreak there had been fears the price of oil would rise due to tensions between Iran and the United States. However, RAC Fuel Watch data shows that there was only a very short-lived price rise after the US assassinated an Iranian general and Iran’s subsequent retaliation.
Since then the oil price fell away which now gives fuel retailers the scope to cut petrol prices by 4p a litre in the next fortnight. Diesel should come down by at least 5p a litre if the UK’s retailers play fair with drivers.
RAC fuel spokesman Simon Williams said:
“Some drivers are no doubt aware that fuel prices in the UK are affected by global events, but many will be surprised to hear the coronavirus outbreak in China could inadvertently lead to the price of petrol and diesel falling dramatically.
“We urge the supermarkets, who are so influential in what drivers pay for fuel due to their massive market share, to pass on the wholesale savings they’re benefiting to motorists at the pumps, especially as they have actually increased forecourt petrol prices every day since 2 January.
“Drivers have been unfairly punished as a result of the very short-term oil price rise caused by tensions in the Middle East. It seems as though the big four supermarkets have been capitalising on this as the oil price has fallen steadily from a high of $69.82 on 6 January to $59.75 on 24 January. This is the first time oil has been under $60 a barrel since 31 October 2019.”
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The RAC provides complete peace of mind to 12m UK private and business drivers, whatever their motoring needs. Its services include:
- Breakdown assistance. Its highly-skilled, 1,600-strong branded patrol workforce attends more than two million breakdowns every year, fixing on average four out of five vehicles at the roadside. The RAC’s patrol fleet is one of the most advanced in the world, and was the first to roll out both an All-Wheels-Up recovery system, allowing the vast majority of vehicles to be recovered from a single patrol van, and EV Boost mobile electric vehicle charging units
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The RAC also works to support the interests of its members and UK drivers on the most important motoring issues which it identifies via the annual RAC Report on Motoring and the RAC Opinion Panel. The Report on Motoring is the longest running analysis of driver opinion in the UK having been published every year since 1989.
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