Pump prices are falling at their fastest rate so far this year and are now at their lowest level in almost three years.
Unleaded petrol and diesel at UK forecourts have plummeted by nearly 7p in the last month, RAC Fuel Watch analysis shows. Unleaded now costs 136.15p a litre on average – down 5p since the start of September (141.26p) and almost 7p lower than mid-August (142.86p), saving nearly £4 on a complete fill-up.
Diesel prices are down nearly 5p a litre since the start of September (145.99p to 140.87p), and nearly 7p lower than mid-August (147.74p).
Drivers can also find prices well under the average at supermarkets, which are currently charging on average 133.23p for unleaded and 137.69p for diesel.
In Northern Ireland, where the RAC considers pump prices to be at their fairest, a litre of petrol stands at 131.5p and diesel is 134.2p.
The tumble in pump prices is due to the relatively low oil price of $73, brought about by lower global demand, combined with a relatively strong pound, with the latter being helped by a fall in the UK’s rate of inflation.
If prices continue to drop as expected, the average cost of a litre of petrol could dip to as low as 132p and diesel to 138p within the next fortnight – which would be the lowest price drivers have paid for either fuel since July and September 2021, respectively.
RAC fuel spokesperson Simon Williams said: “Based on wholesale pump prices, which is what retailers pay to buy the fuel in the first place, we know there’s scope for further price cuts so we very much hope that within the next few weeks we’ll see pump prices reach their lowest levels in three years.”
He continued: “We continue to look forward to the new Government proceeding with its plans to introduce greater pump price transparency with the Pumpwatch scheme, along with an official monitoring function that can help ensure drivers are charged a fair price every time they fill up.”
The RAC has also urged drivers to capitalise on the low pump prices further by driving more efficiently and finding the cheapest places to refuel.
“The message to drivers is simple – keep shopping around for fuel and use the available free tools out there, such as the MyRAC app, to always pay the lowest price wherever you can. We publish averages on our app and website to help drivers see the absolute maximum they should ever be paying, but there are some good deals out there if you know where to look,” Williams advised.
