Money

Petrol prices set to drop by up to 5p per litre in the next two weeks


PETROL prices are poised to drop by up to 5p a litre in the next fortnight.

Asda led the way with a price cut of up to 3p as the RAC predicted low oil demand would push prices down.

Petrol prices are set to drop by up to 5p per litre in the next two weeks

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Petrol prices are set to drop by up to 5p per litre in the next two weeksCredit: AFP or licensors

Average petrol prices were the same for a second month at just above 114p a litre in October.

The RAC says this should herald lower prices at forecours just as England enters its second nationwide coronavirus lockdown.

RAC’s Simon Williams said: “Fuel prices are starting to fall just at the point when we’re all driving less.”

The RAC said diesel has been over-priced for nearly two months now and pressure is mounting on retailers to cut its cost.

Between mid-August and mid-October, the wholesale price of diesel was below that of petrol and in October it fell yet again by 4.62p per litre to 83.73p.

Yet diesel pump prices remain significantly higher than petrol at 117.82p at the end of last month, down just 0.27p compared to at the start of October.

Asda led the way with a price cut of up to 3p

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Asda led the way with a price cut of up to 3pCredit: Alamy

Latest figures show filling up a 55-litre family car with petrol at a supermarket is now £2.65 less than the average (£60.29 per tank, compared to £62.94), and £2.24 less to fill with diesel (£62.56 per tank, compared to £64.80).

The falling oil price is as a result of ongoing concern about global demand as the second coronavirus wave continues to impact on trade and travel.

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In the shorter term, the result of the US election may also have some effect on prices, although analysts seem split on whether it could mean prices end up slightly higher or slightly lower, depending on who gets elected.

RAC fuel spokesman Simon Williams said: “While we’re not expecting prices to go as low as last time, March saw petrol prices under £1 a litre as a result of oil prices falling to a 21st century low.

“Any driver needing to fill up later in November should be greeted by the sight of lower prices, if retailers do the right thing.

“It remains to be seen, however, to what extent retailers pass on the wholesale savings they have been enjoying recently to drivers.

“While the volume of fuel sold in the coming weeks is likely to be lower than of late, we’re concerned some retailers may only choose to only cut by a few pence, or not at all, which would be bad news for drivers, especially as we don’t anticipate the roads will be as quiet as during the first lockdown.

“There is perhaps a cruel irony for motorists here in that the route to cheaper prices is cheaper oil, yet the main reason the oil price is lower is because so many of us across the world aren’t travelling.

“Diesel drivers in particular have reason to feel particularly hard done by, as arguably they have been paying over the odds for the fuel for two whole months now.

“We strongly urge retailers to lower the price of diesel, both for businesses and the country’s 12m-plus diesel car drivers.”

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