A tank of fuel could cost £10 less in two weeks as petrol prices drop
Fuel prices have dropped from their peak at the start of the month by over 2p per litre, and within two weeks savings of £10 per tank could be seen.
Fuel prices have dropped from record highs, and could fall even further over the next two weeks.
Total savings could be as much as £1.50 per tank, as unleaded prices are now, on average, below 190p per litre, and diesel sits at 196.96p per litre.
These prices represent reductions of over 2p per litre since the start of the month, when both unleaded and diesel fuels seemed certain to rise over £2 per litre.
The lower prices are down to reducing wholesale costs of oil, and the AA, according to the BBC, says that as much as £10 could be knocked off per tank within two weeks.
Wholesale price drops have resulted in the price of Brent crude oil - the international benchmark, the BBC reports - dropping below $95 per barrel for the first time since Russia invaded Ukraine - the trigger point for rising prices.
The reason for this is widespread fear in the US of an incoming recession, resulting from the Covid crisis, as well as the Russian invasion of Ukraine. This fear has resulted in people in the US spending less, including on fuel, which has led to a decrease in demand for oil, and therefore prices are dropping.
While the AA predicts that prices per tank could be reduced by up to £10 per litre, though, it is not a guarantee. This is because it requires petrol stations to pass on the lower costs of wholesale oil to the customer at the pump by reducing the pump price. In some places, this is not happening, according to an AA spokesperson as reported by the BBC.
Additionally, the BBC reports that crude oil prices will generally continue an upward trend as the war in Ukraine continues, according to independent energy analyst, David Cox.
This is because of the volume of oil that was supplied to the industry by Russia, that the industry is no longer receiving as a result of the on-going war in Ukraine.
Even with the possibility of increased Saudi oil exports, the hole left by the lack of Russian supply will result in the continuation of increased wholesale prices, which in turn will lead to increased prices at the pump.
