Expensive petrol and diesel prices have been the bane of motorists as of late. Nobody enjoys paying over the odds for fuel, but the situation could, at last, be improving. UK petrol and diesel prices are starting to fall, with petrol currently averaging at 188.76p per litre and diesel at 196.96p per litre. Fuel prices in the US have also begun to decline lately, but the savings may only be temporary, according to experts.
The fall in at-the-pump fuel prices corresponds with a drop in wholesale petrol prices, which peaked at more than £1 a litre on 1 June and fell to below 80p a litre for much of last week. That’s an impressive 20p fall from record prices in just a fortnight.
Meanwhile, over in the US, petrol (or ‘gas’) reached a record-setting $5.02 per gallon on 14 June, while average prices have fallen to $4.52 with many stations charging below $4 per gallon at the time of writing.
See also: BMW 7 Series Drives Over 1000 Miles On A Single Tank Of Diesel
As reported by Auto Express, the AA believes this drop-off in wholesale costs could potentially result in a 20p reduction in petrol prices for customers here in the UK, meaning the average tank of fuel could soon be as much as £10 cheaper. However, this is entirely dependent on whether the retailers will pass the savings on to the customer.
Luke Bosdet, a fuel spokesman at the AA, stated “Wholesale petrol’s trajectory, if sustained, would lead to savings of a tenner off a tank from the record highs – providing the fuel trade is prepared to pass them on… The problem is that, in many places, the price cuts are quite simply not happening despite more than six weeks of falling costs.”
While the drop-off in fuel prices is good news for motorists, the savings may only be temporary according to experts. Chief Economist at energy analytics firm Vortexa told Auto Express that “the supply of Russian oil hasn’t really been a factor in prices yet” which, combined with refining capacity limitations and a lack of refined fuel inventory could result in the price of oil soaring from its current price of $99.6 per barrel (at the time of writing) to between $100 and $200 per barrel in the next 12 months.
According to data collected by Trading Economics, the UK previously currently ranked fifth in terms of global petrol prices, with the Netherlands, Germany, Singapore and France occupying the top four spots.
The rise in fuel prices caused the cost of filling the 55-litre tank of a typical family car to rise to more than £100. Many petrol stations sold petrol for more than £2 per litre, and many motorway service station pumps were even more expensive. The UK government introduced a 5p-per-litre fuel duty cut to ease the effect of rising costs on customers, though many speculated that fuel retailers pocketed these potential savings instead. Following an investigation conducted by the Competition and Markets Authority (CMA), it has now been found that the tax cut was reflected in petrol and diesel prices in the UK.
Next up: Can Eco Tyres Save You Money On Fuel?
Source: Read Full Article