Petrol prices could fall by as much as 10p per litre after US President Donald Trump admitted that the war in Iran was “over”, offering a potential boost for cash-strapped motorists this November.
Trump stressed that militarily, Iran was “effectively over”, adding that they were “just keeping it the status quo”. He said the United States was “fully locked and loaded” but added that “we don't think there's going to be any reason to use it.”
Wholesale Costs Plummet
The de-escalation in conflict could be a major boost for UK drivers, with fuel costs likely to come crashing down. Since October 13, the wholesale cost of unleaded petrol fell from 77p a litre to just 68p by the end of October, with fees sitting below 62p.
Petrol’s average pump price has already fallen by 5p per litre since early October, and the track of plummeting wholesale costs suggests that another 10p reduction should be on the way.
Savings at the Pump
The AA suggests that each 5p reduction at the pump knocks around £2.75 off the cost of filling a typical 55-litre car fuel tank.
Luke Bosdet, the AA’s spokesman on pump prices, said: “The chances of finding somewhere with petrol below 160p a litre are incredibly hit and miss but, clearly, there are forecourts able to slash their fuel prices and put the rest to shame.”
Bosdet added: “London and the South East stand out for not showing any fuel stations with the bargain petrol prices of northern England, Wales and even Scotland. Some forecourts are still charging close to the peak prices of early October and, given how much wholesale costs have fallen since the middle of last month, that is unforgiveable.”
Diesel Prices Lag Behind
However, despite petrol prices radically falling, the same cannot be said for diesel at the same rate. Wholesale costs have dropped by around 4p per litre since the middle of October, with pump prices still close to £2 per litre.
Howard Cox, Founder of FairFuelUK, warned more needs to be done. He said: “Enough waiting. Oil prices have fallen sharply and Britain's motorists must now see the benefit at the pumps.”
Cox added: “FairFuelUK wants at least 10p a litre off pump prices as lower costs feed through the supply chain. And diesel needs to fall even further where wholesale prices support it. Nearly £2 a litre for diesel is hammering families, hauliers, farmers, van drivers, tradespeople and small businesses.”
