UK Pump prices expected to fall as wholesale cost of fuel hits 4 year low at $69 a barrel.
Drivers should see fuel prices fall from a six-month high in the next few weeks due to a significant drop in wholesale costs according to competition and marketing data sources.
The big question is, will the retailers pass on the savings to the UK public? Prices should reduce by around 6p a litre for petrol and 3p a litre for diesel with the current averages being 139p and 146p respectively.
Low oil prices of just $69 a barrel, the lowest for 4 years, are the reason that prices should now drop for UK motorists.
Will UK supermarkets decide to join that party, with the lowest prices already in the UK, and already at a level that the main fuel retailers would drop to, will they continue to be competitive or simply fit into the same line of pricing and make more money? These retailers are more than likely to reduce to even lower levels as the main reasons for low fuel prices at supermarkets is to entice customers into the supermarkets to shop, and get cheap fuel at the same time, a one stop shop that ultimately sees the supermarkets win with food and drink being at an all time high price wise.
Back in 2022 the Government tasked the Competition and Markets Authority (CMA) with monitoring competition in fuel retailing. In its first report, the CMA concluded major retailers had overcharged drivers by £900m and in 2023 all retailers were deemed to have overcharged by £1.6bn. In its most recent update in November 2024 the CMA expressed concerns about the intensity of competition between fuel retailers. Its next quarterly report is due to be published later in March 2025.
Ultimately, it looks like the UK motorist may well be in for a better price at the pumps imminently, especially at the supermarket chains. Keep your eyes on the various fuel finder apps available like the one the RAC has which can be downloaded HERE.
All fuel prices quoted are based on Competition and Markets Authority data.
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