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RAC forecasts 5p cut in the price of a litre of fuel

RAC forecasts 5p cut in the price of a litre of fuel

Fuel retailers have started to reduce pump prices following cuts in wholesale prices leading the RAC to claim a potential 5p cut is on the cards.

RAC fuel spokesman Simon Williams said: “While this is a welcome price cut, it has been an extremely long time coming. The cost of buying petrol on the wholesale market has dropped like a stone so we should be looking for at least 5p to come off the average price of unleaded petrol at the pumps of 128.84p.

“On the face of it retailers are banking over £2.75 every time drivers fill-up their tanks with petrol. If they were playing fair and passing on the savings they are making as a result of lower wholesale prices then drivers would be enjoying a saving of this amount every time they visit the pumps. Fuel retailers across the board have been reaping the benefits of some of the biggest margins on fuel the RAC has seen in almost four years.

“We will be monitoring the effect of these latest price reductions on the UK average price of petrol carefully. The last round of supermarket cuts purported to take up to 2p per litre off unleaded, but RAC data shows that in reality just over 1p came off the average price of a litre of supermarket petrol - down from 127p per litre to just 125.36p. We badly need the three other supermarkets to keep up with Asda and to fully participate in a meaningful ‘supermarket pump price war’ - at the moment it’s sadly very much a cold war.

“The supermarkets’ role in influencing pricing at all other forecourts cannot be understated - without significant price movement from the big players in a falling wholesale market, there is little to encourage smaller retailers to shift their own prices to the benefit of consumers.

“In addition, there is finally some respite for hard-pressed diesel drivers from seemingly never-ending price rises with a sizeable but very much warranted price cut.”

Until the fuel price cuts start to impact, the motoring organisation said that drivers were continuing to suffer from “overpriced fuel”.

Average UK petrol prices are currently around 128.8p per litre for unleaded petrol with a litre of diesel averaging 136.5p.