The average price of petrol and diesel fell by 6.5p in September and prices are likely to come down further in the coming weeks.
September’s fall was the ninth biggest monthly drop since 2000 and saw a litre of unleaded come down from 141.26p at the start of the month to an average of 134.79p by the end. Meanwhile diesel fell from 146p to 139.5p. A full fill-up with petrol is now £74 and a tank of diesel is just under £77.
The fall in pump prices is the result of the continued drop in the cost of a barrel of oil, which went from $78 at the beginning of September to $72 at the end; the price was nearer $90 in early July. This, combined with a slightly stronger pound, means wholesale fuel, which is traded in dollars, is cheaper for retailers to buy.
Petrol is now down 15.5p since the start of May, while diesel has come down 18.5p in the same period.
Prospects for further price reductions in the coming weeks are good too. Looking at the current delivered wholesale price of petrol, which stands at 99p a litre, and diesel, which is 103p, the RAC says pump prices could continue to fall over the next two weeks by as much as 4p a litre.
Supermarket fuel prices remain lower than the UK average, cheaper by 3p a litre, with petrol at 131.86p (UK average – 134.79p) and diesel is 136.47p (UK average – 139.5p).
RAC head of policy Simon Williams said: “With analysts predicting oil may continue to fall on the back of a weakened global economy and Saudi Arabia upping its output to regain lost market share, the immediate future on the UK’s forecourts looks considerably brighter for drivers.”
