Petrol prices fall to lowest for three years.
Published
Share
Petrol prices have dropped to their lowest in three years, with the average cost of unleaded fuel now around £1.35 per litre, according to the RAC. The decline is due to lower global oil prices and a stronger pound. This marks a significant decrease from July 2022, when petrol prices surged to nearly £1.92 per litre following Russia’s invasion of Ukraine.
Simon Williams, the RAC’s fuel spokesman, said prices could continue to fall in the coming weeks, with some drivers already paying as low as £1.26 per litre. Diesel prices have also dropped, with the average price sitting at £1.41 per litre, also nearing a three-year low.
The RAC has criticized retailers for not lowering prices quickly enough in response to falling wholesale costs, prompting the Competition and Markets Authority (CMA) to investigate. The CMA found weakened competition had led to higher profit margins for supermarkets. However, the Petrol Retailers Association (PRA) argued that independent forecourts face rising labour and energy costs, putting pressure on their margins.
The drop in fuel prices is largely attributed to a global oil price of around $75 per barrel and a strong pound, which allows UK retailers to purchase fuel more cheaply. Fuel prices had previously spiked after Russia’s invasion of Ukraine, with Brent crude reaching $139 per barrel at one point. While the UK imports only 6% of its oil from Russia, it was still affected by global price increases.
