Fuel Prices Set To Tumble Once Again

Tue 3rd Nov 2020

Lockdown petrol prices look set to return, though experts are predicting that the sub-£1 prices of earlier in the summer will not return.

Many of the UK’s supermarket chains have already begun cutting fuel prices, with Asda this week announcing a 2p per litre reduction on unleaded petrol and a 3p drop on diesel.

There has been a drop in the wholesale price of fuel, and that combined with the slump in demand caused by lockdown is sure to make prices fall, even though the RAC says that the prices should be lower already based on the current price of oil.

“It’s likely to be a case of déjà-vu for drivers this month as once again fuel prices are starting to fall just at the point when we’re all driving less as a result of a coronavirus lockdown,” said Simon Williams from the RAC. “It’s good to see Asda leading the way this morning with an initial price cut and we now need other retailers to follow suit as quickly as possible.

“While we’re not expecting prices to go as low as last time – March saw petrol prices under £1 a litre as a result of oil prices falling to a 21st century low – any driver needing to fill up later in November should be greeted by the sight of lower prices, if retailers do the right thing.

“It remains to be seen, however, to what extent retailers pass on the wholesale savings they have been enjoying recently to drivers. While the volume of fuel sold in the coming weeks is likely to be lower than of late, we’re concerned some retailers may only choose to only cut by a few pence, or not at all, which would be bad news for drivers, especially as we don’t anticipate the roads will be as quiet as during the first lockdown.”