Oil price crash – how much drivers will save on petrol and diesel
Petrol prices could fall by as much as 17p a litre to £1.06 as a result of the crash in the price of crude oil.
That's after an argument between oil-producing countries this weekend saw the price of oil drop $15-a-barrel as Russia and Saudi Arabia failed to agree on how much they should be bringing to the market.
RAC fuel spokesman Simon Williams told Mirror Money: “This is looking like the biggest single daily drop in the oil price in 20 years. It should translate to some serious cuts at the pumps, particularly as the price of both petrol and diesel is still overpriced despite two rounds of cuts from the supermarkets last month."
Just how much you could save is a matter for debate though.
AA fuel price spokesman Luke Bosdet said: “The spat between oil producers echoes the oil price crash in 2015, when £1-a-litre fuel returned to UK petrol stations.
"There is still a long way to go and the chances of another major collapse in forecourt prices will depend on how long the oil price plunge continues and how quickly UK retailers take to pass on savings."
The AA estimates a 7p to 8p a litre fall in the pump price of petrol – which could see drivers finding fuel at below 110p a litre – the cheapest since August 2016.
The RAC is predicting the price drop could be even bigger.
“The last time we saw the wholesale price of petrol this low was in March 2016 which led to an average price of 106p a litre two weeks later," Williams said.
"That’s nearly 17p a litre below the current average of 122.85p. The diesel wholesale price was last this low in September 2016 which yielded a price of 113p a litre – 12.5p below its current UK average of 125.59p."
But he's not convinced prices will fall quite that far though – estimating a 10p a litre drop is more realistic, most likely led by the major supermarkets.
“We strongly urge every fuel retailer – large and small – to pass on these savings as soon as possible," Williams said.
"But we expect the big supermarkets who sell the lion’s share of fuel to lead the way with some swift and significant cuts in the next few days."
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