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Cost of filling a tank falls by £5 in July | Cost of filling a tank falls by £5 in July |
(about 5 hours later) | |
The price of petrol fell in July, knocking nearly £5 off the cost of filling a tank, according to the RAC. | The price of petrol fell in July, knocking nearly £5 off the cost of filling a tank, according to the RAC. |
Average petrol prices dropped by nearly 9p over the month to 182.69p per litre, while diesel fell by almost 7p to 192.38p per litre. | Average petrol prices dropped by nearly 9p over the month to 182.69p per litre, while diesel fell by almost 7p to 192.38p per litre. |
But the motoring group warned the reductions still don't fairly reflect the fall in the wholesale price of fuel. | But the motoring group warned the reductions still don't fairly reflect the fall in the wholesale price of fuel. |
It said major retailers should be cutting pump prices much further. | It said major retailers should be cutting pump prices much further. |
Petrol prices drop from record highs | Petrol prices drop from record highs |
Petrol pricing is cause for concern, warns watchdog | Petrol pricing is cause for concern, warns watchdog |
Refineries cash in as petrol prices soar | Refineries cash in as petrol prices soar |
Fuel prices have soared in recent months, driven by the war in Ukraine and moves to reduce Europe's dependence on oil from Russia, a major supplier. | Fuel prices have soared in recent months, driven by the war in Ukraine and moves to reduce Europe's dependence on oil from Russia, a major supplier. |
With food and energy bills also surging, many households are feeling financial strain. | With food and energy bills also surging, many households are feeling financial strain. |
Wholesale petrol prices peaked at the start of June, but have since fallen as the price of oil has dropped back. Fears of a recession in the US and elsewhere have hit demand for oil, and the price of Brent crude - the international benchmark for oil - has fallen to around $100 a barrel, after soaring when Russia invaded Ukraine. | Wholesale petrol prices peaked at the start of June, but have since fallen as the price of oil has dropped back. Fears of a recession in the US and elsewhere have hit demand for oil, and the price of Brent crude - the international benchmark for oil - has fallen to around $100 a barrel, after soaring when Russia invaded Ukraine. |
'Falling too slowly' | 'Falling too slowly' |
The RAC said nearly £5 was shaved off the cost of a 55-litre tank of petrol in July, from £105.29 down to £100.48, as retailers lowered their prices. | The RAC said nearly £5 was shaved off the cost of a 55-litre tank of petrol in July, from £105.29 down to £100.48, as retailers lowered their prices. |
The cost of filling up a diesel tank dropped by £3.68 over the month. | The cost of filling up a diesel tank dropped by £3.68 over the month. |
These are the third and fourth biggest monthly reductions, respectively, in the last 20 years. | These are the third and fourth biggest monthly reductions, respectively, in the last 20 years. |
However, the RAC says the falls are still too slow, given the significant reductions in the wholesale price of fuel. | However, the RAC says the falls are still too slow, given the significant reductions in the wholesale price of fuel. |
Wholesale petrol prices have fallen by 20p over the last eight weeks, whereas the average price paid for unleaded by drivers has only dropped by 9p in July. | Wholesale petrol prices have fallen by 20p over the last eight weeks, whereas the average price paid for unleaded by drivers has only dropped by 9p in July. |
Based on average wholesale prices last week, the RAC says petrol should be around 167p per litre, not 183p. | Based on average wholesale prices last week, the RAC says petrol should be around 167p per litre, not 183p. |
It warned that the failure of major retailers to slash petrol pump prices in line with the fall in wholesale costs of unleaded is costing drivers, who are paying nearly £9 a tank more than they should be. | It warned that the failure of major retailers to slash petrol pump prices in line with the fall in wholesale costs of unleaded is costing drivers, who are paying nearly £9 a tank more than they should be. |
RAC fuel spokesman Simon Williams said the biggest retailers should have "cut their prices more significantly on a daily basis", given the steady and consistent fall in the wholesale price of petrol. | RAC fuel spokesman Simon Williams said the biggest retailers should have "cut their prices more significantly on a daily basis", given the steady and consistent fall in the wholesale price of petrol. |
He said their unwillingness to do this made July "an unnecessarily tough month for drivers". | He said their unwillingness to do this made July "an unnecessarily tough month for drivers". |
Fact vs fiction: Five tips for saving petrol money examined | Fact vs fiction: Five tips for saving petrol money examined |
However, some fuel analysts argue that is not a fair comparison. | However, some fuel analysts argue that is not a fair comparison. |
"Over the last eight weeks, prices have jumped around; it's understandable if retailers have tried to smooth those differences out in their prices," said Steve Irwin, director at Portland Analytics. | |
"There is often a lag between wholesale prices dropping and a drop in prices at the pump. I expect we will see further price drops in petrol in forecourts over the next week or so of a further 5, 6 or even 7p a litre." | "There is often a lag between wholesale prices dropping and a drop in prices at the pump. I expect we will see further price drops in petrol in forecourts over the next week or so of a further 5, 6 or even 7p a litre." |
While the drop in petrol prices is good news for drivers, Mr Irwin warned it is not necessarily a good sign for the economy. | While the drop in petrol prices is good news for drivers, Mr Irwin warned it is not necessarily a good sign for the economy. |
"The market is clearly worried about a downturn, with people cutting back this autumn and winter, and that is being factored into the wholesale price," he said. | "The market is clearly worried about a downturn, with people cutting back this autumn and winter, and that is being factored into the wholesale price," he said. |
"If signs of that downturn don't materialise, prices may go back up again. If the market thinks they are, they could fall further." | "If signs of that downturn don't materialise, prices may go back up again. If the market thinks they are, they could fall further." |