Fuel prices are still falling, which is good news for motorists. However, the RAC believes there’s room for the prices to drop even further.
At the end of November, the RAC counts four months of consecutive reductions in the price of fuel. A litre of unleaded petrol fell by a further half-penny last month, down to 125.93p.
The data, from RAC Fuel Watch, also shows that diesel has fallen commensurately, and sits on average at 130.27p. It hasn’t enjoyed quite the same streak of reductions, however. September saw a rise in the price of diesel, as petrol dropped. Since then it’s been on the way down.
Overall, since the beginning of August, petrol has fallen on average by 3.31p per litre, while diesel has fallen by 2.21p per litre. The drops are from a respective 129.24p and 132.04p, to the prices they are today.
The resulting savings are enough to take a chunk out of your morning coffee. An average 55-litre tank on a family car is £1.82 cheaper for petrol, and £1.21 for diesel. Buying 55 litres of petrol and diesel will set you back, on average, £69.26, and £71.41 respectively.
The cheapest fuel you’ll find
The average isn’t necessarily what you should be aiming for, though. Supermarkets undercut conventional retailers by some margin, with Asda and Tesco often leading the way. Asda’s cheapest petrol price is currently 119p per litre, while Tesco trails at 121p. Diesel can be found for as low as 125p per litre.
According to RAC spokesperson Simon Williams, the gulf between the cost of fuel at retailer and supermarket prices is at a high. The big names haven’t passed on the same savings as the supermarkets.
“Despite this knocking off about a penny and half from the average price of fuel charged at the four big supermarkets, the UK average only reduced very slightly. This implies that other retailers haven’t followed the supermarkets lead and are not passing on savings in the wholesale price.
“Normally, the supermarkets are about 3p a litre cheaper than other retailers so seeing this go out to 4.7p is definitely a sign something’s different.”
Even more savings can be had
In spite of the good news of consecutive drops in fuel prices, and petrol getting below 120p per litre at its cheapest, more can be done, says the RAC. Given the wholesale price of oil – and the retail price of fuel – there is room for further improvement.
“Looking at the wholesale price of both petrol and diesel retailers of all sizes should be cutting at the pump. As it stands, unleaded should come down by 5p a litre and diesel by 4p. We would like to think retailers are about to pass these saving on in the expensive run-up to Christmas.”