Fuel prices could plunge by £5 a tank as oil price war and coronavirus hit
Drivers could soon see petrol and diesel prices slashed by over £5 a full tank, with fuel falling to the cheapest levels in nearly five years. The RAC warns an oil price war and the coronavirus fallout are sending prices tumbling.
Oil prices crash amid Russia-Saudi price war
Last week, crude oil prices nosedived from $50 to $30 a barrel, triggered by a bitter Russia-Saudi showdown. An RAC spokesperson said, “If pump prices reflect wholesale costs from the past week, we expect around 10p-per-litre off petrol and diesel.”
This would push average unleaded to just 112p per litre, diesel to 115p — prices unseen since 2016. Filling a 55-litre tank of petrol now costs £67 on average, diesel £68.50. Slashes of £5.40 and £5.30 per tank could follow.
Supermarkets rush to cut prices amid fierce fuel battle
Supermarket forecourts are leading the charge in passing savings to motorists. Asda was first to cut unleaded and diesel prices. Tesco, Sainsbury’s, and Morrisons expected to join the price war soon, keen to lure shoppers.
Fuel sales nosedive as Brits drive less
The fuel crisis isn’t just about prices. Demand is tanking too – estimates show a 15% drop in sales over the last week alone. Brian Madderson, chair of the Petrol Retailers Association, said contacts in countries further along in the COVID-19 outbreak have reported a shocking 60% fall in fuel sales.
“We expect demand to keep falling, but prices might not drop further as stations try to protect margins,” Madderson said. “Supermarkets will still cut prices for grocery wars, but outside that, pumps won’t get cheaper.”
Fear of stockpiling hasn’t hit fuel stations. Unlike toilet paper or sanitiser, drivers aren’t rushing to fill up tanks.
Filling station staff shortages could force closures
Madderson warns staff absences due to illness or shielding could close some filling stations. “That might not cause major supply issues though, since demand is low,” he said. Fuel has no expiry date, so suppliers can store excess if sales drop further.
As demand falls below production, retailers may resort to renting containers to stash surplus fuel until drivers hit the road again.
