Motoring associations fear that forecourts will not pass on lower wholesale prices.
As petrol and diesel prices continue to fall, the cost of filling up your car will be £10 lower within two weeks.
According to AA, petrol prices have dropped by 2.8p a litre since record highs. This has lowered the price of a fuel tank by £1.50.
As wholesale prices continue to drop, drivers will likely pay £10 less per tank. On Jun 1, wholesale petrol prices reached £1 per litre but dropped to 80p per litre during much of the week. This indicates that the price of petrol has fallen as much as 20p per litre in a matter of fortnights.
Luke Bosdet, AA, stated that wholesale petrol trajectory if maintained, would lead to savings at record highs – provided the fuel trade is ready to pass them on.
“So far, this morning, even with oil rebounding,” wholesale petrol is still below 80.5p per litre.
Bosdet said: “The problem with many places is that the price cuts are quite simply happening despite over six weeks of falling cost.”
Competition watchdog, the competition watchdog, is looking into the “growing gap” in oil prices and wholesale prices as well as petrol and diesel. It said it was “a cause of concern”.
Kwasi Kwarteng (the Business Secretary) ordered an urgent market review after concerns that the March fuel duty cut was not being implemented in any meaningful or visible way.
The watchdog stated earlier this month that its initial findings indicated that the price gap was largely due to oil refineries.
On average, petrol costs 188.76p per litre, while diesel is 196.96p. This is compared to the records of 191.53p & 199.07p at the beginning of the month.
Recently, the cost to fill up a family car was higher than £100. This is due to supply concerns and the war in Ukraine.
Oil prices have fallen in recent days due to rising fears of recession and lower demand. The price of oil dropped to $95 per barrel last week for the first time since Russia invaded Ukraine.
