RAC calls for urgent cheaper fuel as oil price drops and pound rallies
- Credit: PA
Motoring organisation wants forecourt prices to reflect recent 4p-per-litre drop in wholesale oil prices.
The RAC has called on fuel retailers to take urgent action to reflect the drop in the wholesale price of oil and the steadying of the pound.
Last month saw the sharpest rise in diesel prices for more than eight years, which the RAC attributed to fears that oil production would be cut, combined with the slump in value of the British currency.
Now, however, the organisation says that wholesale prices have fallen by 4p per litre since October 25 and the value of the pound has stabilised, meaning there should be scope for forecourt prices fall by 'at least' 3p per litre. Such a reduction would bring prices down to around 114p for petrol and 116p for diesel.
RAC fuel spokesman Simon Williams said: 'Fears are looming that Opec's [Organisation of the Petroleum Exporting Countries] planned production cut, due to be agreed at the end of November, won't come to fruition and consequently won't stem the over-production of oil that has kept prices low.
'The effect of that has been a short, sharp fall in the oil price. This, combined with a rallying pound following last week's High Court case on Brexit and the result of the US election, is causing wholesale prices to fall – which should be good news for motorists.
'Consequently, we are now looking to retailers to cut their forecourt prices and save drivers money when they next fill up. A petrol and diesel cut by retailers now will send the right message to consumers that they can still benefit when wholesale fuel prices fall as they have done in recent days.'