Petrol price drop: Tank of fuel could be £10 cheaper as wholesale cost drops – here’s when

Falling wholesale fuel costs could also lead to lower prices at the pump, but only if fuel bosses pass those savings on to the customer.

After hitting record highs on July 1 when the average price for unleaded stood at 191.4p and diesel at 199.1p, the cost has since fallen to £188.76 and 196.96 respectively.

However, that could drop further, with motorists saving £10 for a tank of unleaded in the next two weeks, according to the AA.

The rising cost of petrol since the start of 2022. Image: PA

AA fuel price spokesman Luke Bodset told the Metro: ‘The wholesale gasoline trajectory, if maintained, would result in savings of one-tenth per tank from record, provided that the fuel trade is ready to pass them on.

“The problem is that in many places the price cuts just aren’t happening despite more than six weeks of falling costs.”

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Rising fuel prices

A review by the Competition and Markets Authority (CMA) earlier this month found that the increase in the price of crude oil as it enters refineries at the wholesale price as it leaves them, as the petrol or diesel more than tripled in the last year, from 10p per liter to nearly 35p per litre.

He said retailer margins “have remained around 10 pence per liter on average” over the same period.

The regulator has launched a market study which will examine the sector “in more depth”.

CMA General Counsel Sarah Cardell said: “Recent pump price hikes are a major concern for millions of drivers.

“While there is no escaping the global pressures pushing fuel prices higher, the growing gap between the price of oil and the wholesale price of gasoline and diesel is concerning.

“We now need to determine if there are legitimate reasons for this and, if not, what steps can be taken to address it.

“Overall, the retail market appears to be competitive, but some areas warrant further investigation.”

A spokesperson for the UKPIA, a trade association representing the fuels industry, including refineries, said the review had been “undertaken quickly” and pledged to continue to “work constructively” with the CMA and the government “to fully understand the issues that have been identified. ”.

Echo: RAC and AA welcome CMA's review of the cost of fuel at the pump.  Photo: PARAC and AA welcome AMC’s review of the cost of fuel at the pump. Photo: PA

RAC fuel spokesman Simon Williams said: “We are particularly pleased to see the CMA acknowledging that the gap between wholesale and retail prices has widened in recent weeks.

“Regardless of why wholesale pricing is what it is, we continue to believe there is clear evidence, including in the past week, that large retailers are incredibly slow to pass on lower wholesale costs, but quick to pass on those that increase. ”

Jack Cousens, head of road policy for the AA, said price competition at the pump is “broken” as supermarket fuel retailers no longer cause widespread price cuts by being the first retailers to pass on wholesale cost reductions.

“The AA therefore welcomes the CMA’s suggestion of greater price transparency at the pump immediately,” he said.

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