The average cost of petrol on Britain’s forecourts fell in July following four months of price rises, the RAC’s Fuel Watch report finds.
The average price of unleaded petrol fell from 112.2p per litre to 111.79p per litre, while the average price of diesel fell from 112.47p per litre to 112.41p per litre.
The RAC says the fall in pump prices has been brought about by a reduction in the wholesale cost of both petrol and diesel, caused primarily by a $6.44 – or 11% – fall in the price of a physical barrel of oil, down from $48.07 on 1 July to $41.63 on 29 July.
It adds that the devaluation of Sterling following the UK’s Brexit vote, which some had feared would lead to a price hike as fuel is traded in dollars, has not impacted wholesale fuel costs negatively.
- Read Moneywise’s tips on how to drive down fuel costs with better driving habits and discounts.
Earlier this week the four major supermarkets cut both diesel and petrol prices by up to 2p per litre, although the RAC argues that prices at the forecourts should have come down sooner given the falling wholesale costs.
RAC fuel spokesman Simon Williams says: “July’s slight reduction in fuel prices is very welcome as it has ended four months of rising prices on the forecourt.
“We are hopeful that the early August supermarket cut will make a bigger difference to household budgets in the summer holiday period even though it came a more than a week later than it should have done.”
South East remains dearest place to buy petrol
Across the UK, Yorkshire and Humber is the cheapest area to buy unleaded, costing 110.37p per litre at the end of July. Northern Ireland meanwhile is the cheapest for diesel at 110.95p per litre on average.
The South East remains the dearest place to buy petrol with average unleaded prices in the region at 111.70p and diesel at 112.49p.
To find the cheapest prices in your area, type your postcode into PetrolPrices.com.