Petrol prices have fallen from record highs resulting in discounts worth £1.50 per tank, according to AA Motoring Group.
Average pump prices have fallen to 188.76p per liter for petrol and 196.96p per liter for diesel.
At the beginning of the month, prices were 191.53 pence for petrol and 199.07 pence for diesel.
The AA said falling wholesale costs could save £10 on a tank in two weeks.
- Why is petrol so expensive in the UK?
- Gasoline prices are a cause for concern, the watchdog warns
- Refineries benefit from rising gasoline prices
Fuel prices have risen sharply in recent months, driven by the war in Ukraine and measures to reduce Europe’s dependence on Russian oil.
With food and energy bills also soaring, many households are under pressure.
Wholesale petrol sales peaked above £1 a liter in early June but fell below 80p a liter for much of last week.
Luke Bosdet, the AA’s fuel price spokesman, said: “The wholesale gasoline trajectory, if sustained, would result in savings of a tenner a tank of gas from record highs, assuming the fuel trade is willing to pass it on.”
“The problem is that in many places, despite more than six weeks of falling costs, the price cuts just aren’t happening,” he added.
Earlier this month, Britain’s competition watchdog said it would examine petrol and diesel prices after finding “cause for concern in some parts” of the industry.
The Competition and Markets Authority said it saw a sharp rise in prices after the fuel was processed by oil refiners.
It also found “significant price differences” between gas stations in “many rural and urban areas”.
But it said retailers had passed the 5p fuel tax cut on to motorists.
Part of the reason why gasoline prices have skyrocketed is the high price of crude oil, which was pushed up by the war in Ukraine.
David Cox, an independent energy analyst, warned that while oil prices may have come off their recent highs, they are likely to remain elevated due to the ongoing conflict.
“It’s hard to see how crude oil can but go up while the war rages on, and that’s not good news for gasoline prices in the medium term,” he said.
The loss of Russian supplies has weighed on an industry already stretched to capacity and replacing that supply will be difficult, Mr Cox warned.
“The problem is that you just can’t replace the amount of oil that Russia produces,” he said.
He said even with US efforts to persuade Saudi Arabia to export more oil, the price is unlikely to move back.
“There could be minor changes up and down, but in essence, crude oil is likely to continue to march higher and that will also keep pressure on gasoline prices higher.”
Add Comment