New data from RAC Fuel Watch has indicated that average fuel prices dropped once more in January – and by all indications, there are more savings to come.
The average price of unleaded fell by 1.32p to 120.92 per litre. That means it should cost an average of £65.78 to fill a 55-litre tank of petrol. That’s a not inconsiderable £6 drop compared to what it would have cost at the end of October.
Diesel, on the other hand, has dropped by just £3.78 per tank since October to £71.50 per 55 litres of fuel. In January, diesel dropped 1.27p down to 13.01p.
Supermarket super savings
In the UK’s four biggest supermarkets, fuel is down an average of 3p a litre to 116.66p for petrol and 125.43p a litre for diesel.
UK fuel prices – winners and losers
The North West and the East of England saw the biggest reductions in fuel – over 1.2p each for petrol and 1.4p each for diesel. Northern Ireland saw the smallest drop in the price of petrol, at 0.82p per litre, while Scotland saw the smallest drop in the price of diesel, at a measly 0.65p per litre. For comparison, every other region dropped by over a penny per litre.
More to come?
According to the RAC, there are still savings to be made for the consumer. Price drops on the forecourts are not yet commensurate with drops in the wholesale cost of fuel over the past few months. The RAC suggests that petrol could still come down as much as 3p per litre, and diesel 2p per litre in the next few weeks.
“While it’s obviously good news the price of fuel has fallen for three months in a row, the story behind the simple forecourt average figures is quite disturbing,” said RAC fuel spokesperson Simon Williams.
“Looking at the wholesale data over the last two months reveals that we should have been paying far less for our petrol and diesel than we have been.
“Unfortunately, three of supermarket fuel retailers appear to have changed their pricing policies for the long term by increasing the margin they take on a litre of petrol to about 2p. This has meant the average price of unleaded has not reduced by as much as it should have because smaller retailers nearby haven’t had to lower their prices as much in order to compete.”