Petrol and diesel prices drop for third consecutive month

Data from RAC Fuel Watch shows the UK average price of unleaded came down by 1.32p to 120.92p, while diesel dropped 1.27p to 130.01p.

It now costs an average of £65.78 to fill up a 55-litre car with petrol – £6 less than it did at the end of October. A tank of diesel, however, has only come down £3.78 to £71.50 over the same period.

RAC Fuel Watch figures show the wholesale price of petrol stayed flat in January while diesel increased by 2p a litre, but when compared to retail prices they were low still low enough to demand pump price reductions during the month. Retailers decided not to pass these on.

The RAC says this explains why the UK average price of fuel has fallen despite the wholesale market being static for unleaded and rising for diesel. If retailers were to pass on existing savings in their wholesale costs the price of petrol ought to reduce by 3p a litre in the next two weeks, and diesel by 2p a litre.

Prices at the country’s four biggest supermarkets are an average of 3p a litre lower at 116.66p for petrol and 125.43p for diesel. At motorway service areas, however, a litre of unleaded sets drivers back 138.87p and diesel 147.55p.