Petrol Prices: The Good News and The Bad News

Mon 5th Oct 2020

Fuel prices are predicted to fall before Christmas, but analysts are predicting any savings might be eaten up by an increase in fuel duties.

A market assessment by the RAC has suggested that increased COVID restrictions across the UK could but a halt on demand for petrol and diesel, and in line with the lockdown earlier this year that will see prices fall.

However, it's not all good news with strong suggestions that the Chancellor, Rishi Sunak, may be keen to bring in a measure of additional taxes to recoup his big spending coronavirus projects - and fuel taxes are in the crosshairs.

The RAC’s Fuel Watch division reports that petrol prices dropped a fraction in September, following three months of rises, however the same data claims that diesel drivers are being hit hard as their drops are not being reflected in prices at the pump.

With the government expected to end years of fuel tax freezes and slap an additional 3p per litre, in line with inflation,though some within parliament are pushing for a higher 5p rise.

“Since June when prices stopped falling as a result of the coronavirus movement restrictions being eased, the cost of fuel has been going up steadily,” said Simon Williams from the RAC.

“While price rises are never good news, they have not gone back to the high levels seen at the beginning of the year.

“Despite this, diesel drivers should feel short-changed by the decision of retailers to keep prices artificially high. 

“This must surely be difficult for retailers to justify. We strongly urge them to lower their prices in an effort to restore drivers' trust.”