Fuel costs anticipated to fall after six-month excessive, evaluation suggests | EUROtoday

New evaluation suggests drivers ought to see gasoline costs fall from a six-month excessive due to a drop in wholesale prices – if retailers “pass on the savings they are benefitting from when buying in new stock”

The RAC stated common pump costs ought to come down by at the least 6p per litre for petrol and 3p per litre for diesel within the coming weeks if the financial savings are handed on.

Average gasoline costs have reached 139p per litre for petrol and 146p per litre for diesel.

The RAC believes worth cuts are attainable as a result of the price of oil has dropped from above 80 US {dollars} in mid-January to beneath 70 US {dollars}.

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“Drivers have had to endure five months of rising prices, so it’s good news wholesale prices have fallen significantly, and forecourt totem signs should soon be reflecting this,” RAC head of coverage Simon Williams stated.

“We expect retailers to start to cut prices this week as more buy in new supply at lower prices.

“As long as the cost of a barrel of crude oil stays around the 70 US dollar mark, we believe there’s a chance drivers could see petrol heading back down towards 130p a litre.

“As always in a falling market, much will depend on how fully retailers decide to pass on these wholesale savings at the pumps.

“The old ‘rocket and feather’ saying about prices going up like a rocket and falling like a feather will hopefully be proved wrong this time around.”

Watchdog the Competition and Markets Authority discovered UK drivers paid a complete of £900 million extra for gasoline at supermarkets in 2022 due to elevated margins and £1.6 billion throughout all retailers in 2023 due to the identical concern.