Drivers could see 3p drop in petrol price
Petrol prices could fall by as much as 3p a litre as a result of reducing wholesale prices and a potential supermarket price war, the AA has said.
The price of both petrol and diesel is currently at a four-year high, after 11 consecutive weekly price increases.
Average petrol prices hit 130.6p a litre this week.
Average diesel prices rose to 134.6p a litre. The AA said it was now a question of “how quickly” supermarket forecourts passed on the lower costs.
The motoring organisation said falls in the past triggered a price battle, with supermarkets jostling to offer the cheapest prices.
Luke Bosdet, from the AA, said: “Drivers were told earlier this month that there was ‘no end in sight’ to rising pump prices. “Now, they should be looking for a £1.50-a-tank cut in petrol costs.
“The key question is to what extent and how quickly the fuel retailers decide to pass on the savings.”
He said potential fuel savings had come from a drop in oil refining margins for wholesalers and a recent strengthening of the pound.
The pound has been rising against the euro and the US dollar but fell on Friday after Theresa May’s Salzburg talks on Brexit.
The average price of petrol and diesel is currently at its highest since July 2014, following significant increases over the past two years.