Fuel Prices Set to Plunge: Biggest Cut in 7 Years Incoming
UK drivers could see petrol and diesel prices slashed by up to 10p per litre next week. That’s the biggest drop in pump prices in seven years, thanks to a shocking crash in the oil market.
Oil Price Collapse Drags Pump Prices Down
In just one week, oil prices plunged from over $50 to a mere $30 a barrel. This collapse has triggered massive falls in wholesale petrol and diesel prices. But UK drivers haven’t benefited yet – the gap between what retailers pay and what we’re charged at the pumps is at its widest ever.
The RAC reveals fuel retailers are still charging drivers around 12p per litre more for petrol and 9p for diesel than their actual costs. The pressure is mounting for retailers to slash prices fast.
Slash and Save: What the Cuts Mean for Your Tank
- Petrol prices could fall to just 112p per litre – a level not seen since late 2016.
- Diesel could drop to 115p per litre.
- Supermarkets, usually leading price cuts, might slash prices by more than 10p in one go – far bigger than usual 2p to 4p drops.
Currently, filling up a 55-litre tank costs around £67 for petrol and £68.50 for diesel. With these cuts, drivers could save about £5.30-£5.40 per tank.
Behind the Price Drop: Oversupply and Coronavirus Demand Slump
Two big reasons are behind this oil price nosedive:
- Coronavirus has slashed global fuel demand as travel and business grind to a halt.
- Major oil producers failed to agree on production cuts, flooding the market with excess supply.
RAC fuel spokesman Simon Williams said, “The oil price has fallen dramatically as major producers ramp up supply just as demand drops due to coronavirus. This has driven wholesale prices to their lowest in four years and puts huge pressure on UK forecourts to slash pump prices by around 10p a litre.”
All eyes now turn to supermarkets and fuel retailers to deliver massive and speedy price cuts — UK drivers deserve a fair deal at the pumps.
