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Fuel pump prices fall, but not fast enough, say experts

Fuel pump prices fall, but not fast enough, say experts

Fuel pump prices have reduced again this week following a series of price cuts by supermarket forecourts - but they should be still lower, according to experts.

The average price of a litre of unleaded petrol is now 123.7p, with the average price of a litre of diesel at 133.2p, according to website petrolprices.com.

The price of petrol fell by more than 5p per litre in November, the biggest monthly drop since January 2015 and the first major price reduction since June as retailers finally reacted to falling wholesale prices, said the RAC.

Petrol at the end of November was back to a price last seen in mid-May whereas diesel went back to its end of September level, said the motoring organisation.

RAC fuel spokesman Simon Williams said: “This is yet more good news for motorists but despite Asda cutting their prices regularly the other supermarkets are sadly lagging way behind. There is often talk of a supermarket price war over fuel, but this couldn’t be further from the truth at the moment.”

However, despite the price falls at the pumps the RAC’s analysis of wholesale fuel prices showed drivers have been overcharged on the forecourt to the tune of 10p a litre for unleaded and 7p for diesel, and average prices should still fall considerably over the course of the next fortnight if retailers played fair.

But Mr Williams claimed that following sharp falls in the wholesale price of fuel the average price of a litre of unleaded petrol should be “at least 8p lower” with a litre of diesel “6p lower”.

Mr Williams continued: “If retailers do the right thing then it could really soon be Christmas at the pumps. Based on our data, petrol still ought to come down by 7p a litre in the next two weeks and diesel by 5p.

“Asda’s nearest competitor is currently charging 2.5p more for a litre of unleaded whereas the most expensive of the big four supermarket retailers is charging over 4p more per litre. Consequently, the UK average price of petrol is not falling at the rate it should be due to the dip in the value of oil.

“The sad reality for drivers is that the majority of fuel retailers are taking advantage of the falling wholesale price by pocketing the savings instead of passing them on at the pumps.”