LONDON: Motorists could see around 3p chopped off the price of petrol this weekend if supermarkets match the sharp falls in the underlying oil price, according to the RAC. The national average price for unleaded should fall from 118p to 115p, the motoring group said, although it warned that many forecourts have been slow to pass on the savings and are instead increasing their profit margins.
Earlier this week most supermarkets cut their petrol prices by 1-2p a litre, falling to around 114p, but the RAC said they should now fall further. The oil price has plummeted to a five-month low amid soaring US fracking production, weak demand in China and a failure by Opec to organise supply cuts to reduce the persistent global glut of crude. Brent crude is currently trading at $48.64 (£37.59) a barrel, compared to $56 in early April, a drop of 13%. Cheaper petrol prices would bring welcome relief to household budgets hit hard by rising inflation in recent months. The average petrol price jumped from a low of 101p in February 2016 to 120p in March 2017, and has been a central factor in pushing up the consumer price index.
RAC fuel spokesman Simon Williams said: “Currently, the wholesale price of a litre of unleaded is 89p. Add to that 7p a litre for delivery and retailer margin and VAT, and you get a forecourt price of 115p, yet the average price being paid at the pumps is 118p. “Motorists deserve to be treated fairly which is why we are once again urging retailers – but especially supermarkets as they lead the market and benefit from selling the most fuel – to be more transparent and cut the price of both petrol and diesel.” Asda and Morrisons have generally been the first movers on petrol prices. Both groups said their pricing is currently under review.
