Will Petrol and Diesel Fuel Pump Prices drop to £1 litre in Scotland?
Petrol and Diesel prices across Scotland and the UK are set to be cut to historical levels following the COVID-19 outbreak, experts report.
Recent numbers from the RAC show the price of oil has fallen from more than $50 a barrel to just $30 in the past week. As a consequence, the hole among what UK petrol stations are paying and what drivers are being charged is at the most extensive in recent history. In some cases, this difference is approximately 12p per litre for petrol and 9p per litre for diesel.
Despite this difference, the RAC anticipates significant price cuts to take effect from the beginning of next week.
If retailers reduce pump prices to match what they’ve been buying on the wholesale market, around 10p per litre should come off the cost of fuel. This would mean average unleaded prices would fall to around 112p per litre and diesel to 115p per litre, prices which were last seen in late 2016.
Supermarkets are expected to be the first to decrease their fuel prices during periods of descending wholesale prices.
Usually, cuts of around 2p per litre are announced first, although last month Asda cut diesel costs by up to 4p on a single day alone. This is an indication that major retailers are expected to cut further in one go than they have ever before.
It currently takes an avg of £67 to fill a regular 55-litre car with unleaded petrol, and £68.50 with diesel. But if prices fall as they’re suspected, this would save drivers around £5.30 per tank of diesel and £5.40 per tank of petrol. Diminishing consumption of oil as a result of the coronavirus is deemed to be the biggest reason for the cheaper fuel prices.
What The RAC Say
Simon Williams, the fuel spokesman for the RAC, said: “The oil price has fallen dramatically as a result of several major oil-producing countries ramping up supply at a time when demand is reducing due to the coronavirus outbreak.
“This has led to wholesale petrol prices dropping to their lowest levels in four years and means there is now enormous pressure for pump prices in the UK to drop significantly, by around 10p a litre from where they are today.
“A drop of this size would see average petrol prices fall to 112p per litre, and diesel to 115p per litre, and we’d expect supermarkets to sell the fuels for as little as 108p and 111p respectively.
“All eyes are now on the UK’s fuel retailers, large and small, to cut fuel prices considerably, and fast.
“It is vital drivers are given a fair deal and retailers accurately reflect the lower wholesale prices at their forecourts.”
