Pressure grows on Britain’s fuel retailers to cut petrol and diesel prices as collapse in global oil price amid coronavirus demand slump should mean 10p off a litre at the pumps
- The price of oil has collapsed dramatically from beginning of March to last week
- This should mean significant reduction in fuel cost according to the RAC and AA
- However, the AA also warned some retailers are cutting fuel prices too slowly
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The collapse in the global oil price because of the coronavirus should lead to 10p off a litre of petrol at the pumps according to motoring organisations – piling pressure on retailers.
Last week, Asda and Morrisons led several retailers in slashing petrol and diesel prices amid the global coronavirus outbreak.
However, the AA and the RAC have now said that prices should be falling even more, with as much as 10p off a litre.
The price of oil has collapsed from more than £40 at the beginning of March to just £24 a barrel last week, leading to heavy falls in the wholesale prices of petrol and diesel.
Motorists filling up at Asda forecourts will now enjoy lower fuel prices thanks to the coronavirus(file image)
This should mean vast savings for motorists, with the RAC expecting big price cuts at UK forecourts to take effect this week in line with the drop in global oil prices.
According to the organisation, this would mean average unleaded prices drop to around 112p per litre and diesel to 115p per litre.
The AA also expect prices to fall, though it warned that some retailers are slashing them at a slower rate than they should be.
Luke Bosdet, AA fuel price spokesman, told Mail Online: ‘If pump prices fail to fall in line with the fall in oil prices then the AA and other bodies will likely write to the competition authority demanding an analysis.’
The AA also expect prices to fall, though it warned that some retailers are slashing them at a slower rate than they should be(file image)
He also added that some retailers were slashing their prices more and faster than others, meaning that drivers would have to shop around for the best deal.
RAC fuel spokesman Simon Williams said: ‘The oil price has fallen dramatically as a result of several major oil-producing countries ramping up supply at a time when demand is reducing due to the coronavirus outbreak.
‘All eyes are now on the UK’s fuel retailers, large and small, to cut fuel prices considerably, and fast. It is vital drivers are given a fair deal and retailers accurately reflect the lower wholesale prices at their forecourts.’