Wholesale cuts could knock £10 off a full fill-up by the end of the month
Petrol prices have fallen back from record levels, leading to average savings of £1.50 per tank, according to the AA.
The motoring organisation reports that average pump prices are down to 188.76p a litre for petrol and 196.96p a litre for diesel, compared with record highs of 191.53p for petrol and 199.07p for diesel recorded in the first week of July.
It says retailers have finally begun to pass on reductions in the wholesale cost of fuel and if the pattern were to continue, prices could drop by as much as 20p per litre by the end of July.
That would take petrol prices back towards levels last seen in May 2022 and equate to a saving of £10 for the average full tank of petrol.
Wholesale fuel prices have been falling for the last six weeks but retailers have been slow to pass these cuts on to drivers, despite rapidly hiking their prices when wholesale costs rise.
According to the AA, wholesale petrol prices peaked above £1 a litre on 1 June but dropped below 80p per litre last week.
AA fuel price spokesman Luke Bosdet said: “Wholesale petrol’s trajectory, if sustained, would lead to savings of a tenner off a tank from the record highs – providing the fuel trade is prepared to pass them on.
“So far, even with oil rebounding, wholesale petrol remains below 80.5p a litre.”
However, he warned that drivers were still at the mercy of retailers’ pricing strategies.
“The problem is that, in many places, the price cuts are quite simply not happening despite more than six weeks of falling costs,” he said. “Roads may suffer extreme heat today but pump prices should have cooled off much more significantly by now.”
Here's a round up of what you can expect to pay to fill up your car at garages in Burnley