Record Drop: Diesel Prices Fall by 12p per Litre in the UK
According to the RAC, diesel prices in the UK experienced the largest monthly drop since 2000, falling by 12p on average. This decrease resulted in a £6.50 reduction in the cost of filling up a family car.
Long Overdue and Insufficient: RAC’s Assessment of Diesel Price Reduction
The RAC argues that the drop in diesel prices, while significant, should have been more substantial considering lower wholesale prices. The motoring group highlights that prices in Northern Ireland were significantly lower, suggesting that further reductions were possible.
Wholesale Response: Supermarkets Make “Big Cuts” to Diesel Prices
The British Retail Consortium confirms that supermarkets responded to falling wholesale costs by implementing substantial cuts to diesel prices. This move aligns with the ongoing decrease in fuel prices, which have fallen for seven consecutive months.
Petrol Prices Decline: Steady Drop Reflects Market Trends
Petrol prices have also been steadily declining since last year, with the average price dropping from £1.46 to £1.43 per litre in the previous month. The RAC notes that changes in wholesale market dynamics should have resulted in a more pronounced price decrease.
CMA Investigates Fuel Pricing and Potential Overcharging
The Competition and Markets Authority (CMA) is investigating fuel prices amid concerns of potential overcharging. The CMA focuses on the higher margins observed in diesel prices and the impact of competitors following suit, potentially leading to increased prices.
Continued Price Volatility and Forecourt Recommendations
The fuel market is under ongoing review, initially prompted by concerns of retailers not passing on a 5p fuel duty cut to motorists. The Petrol Retailers Association advises drivers to shop around, highlighting the dynamic nature of the market and the potential for independent forecourts to offer competitive prices.