RAC diesel car

Cut diesel prices to £1 a litre NOW, says RAC

RAC diesel carThe RAC has repeated its call for fuel retailers to cut diesel prices to £1 a litre or less – because wholesale savings are currently not being passed on at the forecourt.

“We are still looking for the supermarkets to cut the price of diesel properly and give motorists the Christmas present they deserve,” said RAC Fuel Watch spokesman Simon Williams.

“The wholesale price of diesel is still 2p a litre cheaper than petrol, but despite this the average pump price of diesel is 106p – 3p a litre more expensive than unleaded.”

This is out of line with what’s happening on wholesale markets, he stressed.

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If pump prices more closely reflected reality, said Williams, “we would have seen £1 a litre diesel already. The cuts to the diesel forecourt price should have happened far faster and been far more dramatic than has been the case.”

The fact that it hasn’t is “bad news for the country’s 11 million diesel car drivers”.

As the price of oil has sat below $40 a barrel for the past two weeks, and petrol prices have been sub-£1 a litre for some time now, it’s time for fuel retailers, particularly the supermarkets, to act. Who’s going to be first?

Oh, and if you think fuel is currently cheap in Britain, take a look to France to see what cheap diesel is really like. Current price over there? €1 a litre.

That’s 73p a litre…

Average petrol prices could drop below £1 over Christmas

Average petrol prices could drop below £1 over Christmas

Average petrol prices could drop below £1 over Christmas

Petrol prices are expected to drop below £1 in the run-up to Christmas, according to data from the RAC’s fuel watch.

That’s as long as retailers ‘do the right’ thing by passing on reductions in wholesale oil costs, says the RAC.

The motoring organisation says that oil is falling to below $40 a barrel for the first time since February 2009. At that time, the average cost of petrol in the UK was just 90.88p per litre.

We’re unlikely to see fuel prices dropping that much this winter, but the RAC says we could realistically see the sight of £1 per litre becoming commonplace.

RAC Fuel Watch spokesman Simon Williams said: “With the price of wholesale unleaded dropping due to oil falling below $40 the climate is right for £1 a litre petrol, all we need is for the supermarkets to do the right thing and embrace the season of goodwill by passing on those savings at the pump to make Christmas that bit cheaper for everyone.”

[bctt tweet=”The climate is right for £1 a litre petrol”]

Asda already reduced petrol to 99.7p per litre over the recent Black Friday weekend – but has since increased prices on its forecourts.

Williams added: “Motorists have already enjoyed petrol at under £1 as one supermarket cut prices at its 277 nationwide forecourts as part of a three-day promotion at the end of November, but this should now become a common sight across the country. If retailers don’t pass on the savings quickly, they will be giving themselves an unpopular Christmas boost to profits by pocketing the extra margin when they should really be passing this on to their customers instead.”

If retailers do pass on these savings, the RAC says motorists will see petrol being cutting in price by 3p a litre, while diesel prices will drop by 5p per litre.

Black Friday: Asda cuts price of petrol to less than £1 a litre

Black Friday: Asda cuts price of petrol to less than £1 a litre

Black Friday: Asda cuts price of petrol to less than £1 a litre

Asda has cut the cost of petrol at its 273 filling stations across the UK to 99.7p per litre – despite saying it wouldn’t be taking part in Black Friday deals this year.

It comes after George Osborne refused to increase the cost of fuel duty in this week’s spending review.

Asda President and CEO Andy Clarke said: “The Chancellor’s freeze on fuel duty is what our customers were hoping for. We’re adding a further boost by investing in a three-day fuel price drop meaning drivers can now benefit from fuel as low as 99.7ppl in the crucial run-up to the festive period.

[bctt tweet=”Drivers can now benefit from fuel as low as 99.7ppl in the crucial run-up to the festive period” via=”no”]

It’s the first time petrol prices have dropped below a pound since summer 2009. Asda has said it will offer cheap prices on petrol (99.7p) and diesel (103.7p) as part of a three-day price drop.

On Monday, Asda will revert to a market-leading price of 103.7p per litre on unleaded and 106.7p per litre on diesel.

Clarke added: “We’d urge the Chancellor to continue with a freeze on fuel duty in the March Budget to help maintain discretionary income levels for families.”

The RAC responded by saying we could see further reductions in fuel prices.

RAC Fuel Watch spokesman Simon Williams said: “Due to the latest dip in the crude oil price we had predicted that the most price-competitive fuel retailers would soon be selling petrol for £1 so it is great to see that landmark price is now available across the country at the most expensive time of year.

“Even though this promotion only lasts for three days it will help to bring prices down at forecourts nationwide. While we are some way from seeing the average petrol price reach £1, prices at more and more retailers should be getting ever closer to that figure.”

Petrol prices are on the up – but it’s not all bad news for motorists

Price of petrol falls for fourth consecutive month

Petrol Price

The average price of a litre of petrol has fallen for the fourth consecutive month, with unleaded sat at 107.82p as October drew to a close. This is down from 109.45p at the start of the month, saving motorists 90p on the cost of filling up a car with a 55-litre tank.

The figures have been released by RAC Fuel Watch, which is reporting the 1.6p litre drop, along with a minimal reduction in the price of diesel. A litre of diesel will now cost an average of 109.95p, which is close to being the lowest since December 2009.

£5.08 less to fill a family car

All of which means it now costs £5.08 less to fill up with unleaded than it did in July. There’s even better news for diesel drivers, with the cost of a full tank dropping by £5.87.

This is despite a 2% rise in the cost of oil, which remains below $50 a barrel. A strong pound certainly helped matters, with a 2% gain on the dollar helping to keep the whole price of petrol and diesel lower.

RAC fuel spokesperson, Simon Williams, said: “We are currently enjoying a sustained period of lower fuel prices as a result of the long-term deflated oil price which has been brought about by OPEC – the Organisation of the Petroleum Exporting Countries – looking to stop competitors taking its share of the market by overproducing and keeping the barrel price low.

“A year ago motorists had probably become accustomed to only ever seeing prices go up so having four consecutive months of the petrol price coming down is a pleasant surprise. Fuel is without doubt the biggest cost of motoring and the forecourt price is a constant cause of concern for drivers which makes this relief at the pumps all the more welcome.”

Prices to stay low?

The RAC is forecasting little change in pump prices over the next fortnight, fuelling speculation that we could be in for a fifth consecutive month of lower prices. Good news for Britain’s motorists.

Petrol pump

UK fuel prices edge closer to £1 a litre mark

Petrol pumpAnother round of price cuts by Britain’s leading supermarket fuel retailers has accelerated the fuel price war and led many analysts to predict prices will soon fall BELOW £1 a litre.

Asda, Tesco, Sainsbury’s and Morrisons all cut fuel prices over the weekend by up to 2p a litre. Asda now guarantees a litre of unleaded will cost no more than 109.7p nationwide: diesel is cheaper still – a guaranteed 106.7p a litre.

The price cuts are filtering through thanks to the plummeting price of oil: “Brent Crude is now nearly 25% cheaper than it was two months ago,” said RAC spokesman Rod Dennis, “and is just half a dollar from being at its lowest price all year.”

Combine this with a strong pound and you’ve a perfect recipe for lower fuel pump prices.

There’s more to come too, said Dennis. “If the conditions stay right, we could see some even lower prices in a few weeks as people return to work after the summer and the school run begins again.

“And if Brent Crude were to move to the $40 per barrel mark, the prospect of some enterprising retailers selling fuel for £1 per litre will make a return.”

Why have fuel prices taken so long to fall?

Of course, oil prices have been falling for some time now, but it’s only in recent weeks that pump prices have started to reflect this. Why the delay – are fuel companies taking us for a ride?

Not so, said Dennis. “The reason we’ve been slower to see unleaded price cuts is because the wholesale price of petrol – the price retailers buy the fuel for – has not fallen at the same rate diesel has.

“Diesel has been on a steady downward path since the start of May, driven by increased capacity from Asia, but the same cannot be said for petrol.”

At last, though, the wholesale price is beginning to drop – question is, how low can they go?

Petrol pump

Supermarket fuel price war as big four cut petrol and diesel prices

Fuel price warMorrisons and Asda will cut fuel prices from today, in response to cuts by Tesco and Sainsbury’s last week – signalling the start of a new supermarket fuel price war in the UK.

The big four supermarkets, which together retail almost half the fuel sold in Britain, have taken the price of diesel below 110p a litre at some locations.

What’s more, the RAC’s Simon Williams reckons that if the wholesale price of oil remains low (it’s currently below $50 a barrel), “we could even have a chance of seeing £1 a litre diesel”.

Supermarket fuel price cuts: in detail

Tesco is Britain’s biggest fuel retailer and last week announced it was cutting the price of diesel by 2p a litre, and unleaded by 1p a litre.

Sainsbury’s and then Asda followed suit with identical price cuts – but Asda also employs a nationwide fuel price cap, meaning prices are the same across the country: the other supermarkets vary according to region.

Asda thus guarantees motorists will pay no more than 108.7p per litre of diesel, and 111.7p for a litre of unleaded.

Morrisons has also just announced a big 4p a litre cut in the price of diesel, and up to 1p a litre off unleaded.

It says average prices across the UK will now be 107p a litre for diesel and 112p a litre for unleaded.

TDI diesel

Diesel prices down at last as cost of a tankful drops £3 in a month

TDI dieselDiesel pump prices fell by a hefty 5p a litre in July as fuel retailers belatedly passed on savings from a six-year low in the wholesale cost of crude oil.

The price of a litre of diesel dropped from 120.6p a litre at the start of July, revealed RAC Fuel Watch data, to 115.7p by the end of the month – and, on 29 July, the price of diesel dipped below petrol for the first time since 2001.

RAC fuel spokesman Simon Williams said: “July was a month of good news for motorists with diesel vehicles.

“The 5p a litre diesel saving recorded in July means the cost of filling up an average 55-litre diesel family car, such as a Ford Focus, has dropped by £3 in a month.”

Even better, RAC Fuel Watch data indicates more savings could be on the way if the price war between supermarket fuel retailers continues to run: “Pump prices should reduce to around an average of 111p a litre – a price last seen in January 2010,” said Williams.

“This would shave another £2 off a tank of diesel.”

Why is diesel getting cheaper?

The wholesale price of diesel is now 6p a litre less than petrol, reports the RAC.

Lower price have “been brought about by the fact two new refineries in Saudi Arabia are now producing diesel to meet the large European demand,” explained Williams.

“We expect this to be good long-term news for the nation’s 10.7m diesel car drivers as well as for businesses operating commercial vehicles.”

It’s not going to be a short-term saving in diesel prices, either. “Everyone should benefit from a better, fairer deal at the pumps going forwards.”

Has this changed the volume of diesel sold at filling stations?

Despite the anti-diesel sentiment earlier in 2015, HMRC reports sales of diesel fuel at the pumps is continuing to rise.

In June 2015, 2.5 billion litres of diesel were sold – that’s 4% up on May. Petrol sales were flat at 1.5 billion litres.

Note the difference in those two figures: Brits consume a billion more litres of diesel than petrol each month.

Look at the year-on-year difference and diesel’s advantage grows further: June 2015 diesel sales were up 5%, whereas petrol was actually down 4%.

The government also received £2.3 billion in fuel duty from combined diesel and petrol sales in June.


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Filling station pumps

RAC exposes ‘unfair’ diesel pump prices

Filling station pumpsFuel companies are making extra profits from diesel drivers by charging 3p a litre MORE at the pumps but paying up to 3p a litre LESS to buy it in.

Despite the wholesale price of diesel being less than petrol throughout June, reveals the RAC Fuel Watch report, pump prices of diesel have barely budged.

Most fuel retailers maintain a price premium for diesel, sometimes of up to 5p a litre.

The RAC says this could be because fuel retailers are trying to ‘balance the books’ on wafer-thin profits by keeping petrol prices competitive and making bigger margins on diesel.

It’s time things were rebalanced, says RAC fuel spokesman Simon Williams. “While retailers are obviously free to choose how much they charge for petrol and diesel, we believe that motorists deserve to be treated fairly and that means forecourt prices that reflect the wholesale market.”

5p a litre price cut for diesel?

The RAC Fuel Watch tool predicts that diesel should fall by around 5p a litre within the next two weeks, due to falls in the price on the wholsale market.

However, the motoring organisation is doubtful this full saving will be passed onto motorists: the same thing happened in June, but pump prices barely budged.

Williams suggests that under-pressure fuel retailers are more interested in keeping prices competitive for Britain’s 20 million petrol car owners than the 10 million diesel car drivers.

“We need greater transparency and a fairer pricing model for both petrol and diesel,” he said.

There is some good news for diesel drivers though: pump prices are 15p cheaper than 12 months ago. But petrol prices are also 14p a litre less – although both have risen since February 2015’s recent lows…

Filling station pumps

UK fuel prices go up 10p in 3 months

Filling station pumpsThe latest AA fuel price reports shows that fuel prices went up 3p a litre in April 2015 alone – and they’ve risen 10p a litre since February.

It means the average tankful now costs £5 more than it did just three months ago… and AA experts believe this is what’s caused a significant reduction in overall petrol consumption.

Filling station sales were actually up 4.5% in February, but are now down by 1%. Petrol consumption in the UK has never been lower.

AA President Edmund king said the increases were, frustratingly, artificial. “Despite negative inflation in April, warning signals coming from the EU and the United States indicate that the $20-a-barrel leap in the price of oil since the beginning of the year is once again influencing the car-use and fuel-buying behaviour of drivers.

“Once again, this will be down to commodity market speculation pushing up oil and wholesale prices artificially – particularly infuriating for drivers and business when data from OPEC and the International Energy Agency show the world has been pumping 1.5 million more barrels of oil per day than it consumes.”

Pump prices still lower than 2014

Still, it could be worse for motorists; we could still be back in May 2014, when petrol averaged 130p a litre and diesel cost 136p. “Car-dependent families should be feeling much better off,” said King.

Talking about the reduction in car usage, King said that “a 10p-a-litre hike since February echoes the price spikes of 2012 and 2013 and UK drivers may have responded as they have in the past by cutting back on car use.

“However, if official fuel consumption and retail sales figures for April reinforce a worsening picture, it will show a more sustained driver backlash to rising forecourt prices.”

Or could it simply mean that Brits are buying more fuel-efficient cars than ever?

What are the top 10 most economical cars on sale?

Filling station

Cut diesel prices by 4p a litre says RAC

Filling stationThe RAC is calling for a cut of 4p a litre in the price of diesel due to a lack of parity between wholesale and pump prices. Read more