According to the Royal Automobile Club, Brits are about to see a break at the pumps. This news comes after it was announced that there was a drop in wholesale fuel prices. This drop in wholesale prices will take about two weeks to reach the pumps. However, when it does, British drivers will see prices drops as much as 4p per litre. At this point, every little bit helps.
The RAC has been very vocal lately about having oil giants and supermarkets pass on these new savings to consumers. It says that prices have been high for far too long. Now that there is a small break, these savings need to be passed on instead of these companies continuing to make quick money.
The price of unleaded petrol has dropped, on average, to 132.34p per litre. This was thanks, in part, to an on-going battle between Sainsbury and Asda. These two companies were looking to attract business by offering low fuel prices. In short, it ended up causing a fall in average fuel prices across the UK.
Despite this, the RAC says that it is time for further cuts. Now that there has been a dip in wholesale gas prices, these companies should be able to afford another drop in gas prices. If they do this, it will represent the lowest cost of petrol this year so far.
A cut of 4p at the pumps would likely take the average price of petrol in the UK to just below 129p. This is a level that has not been seen since February of 2011 according to the RAC. This will be a very welcome site for drivers who saw prices skyrocket up to 140p during the early parts of 2012.
So why is the price of fuel finally coming down? Experts believe this has to do with a lot of things. First, the United States has made a huge push toward natural gas. This means that it needs to import less oil. Second, a number of car companies are finally building hybrid cars that are affordable for everyone to buy. With all of these changes, it is finally adding up to some cuts at the pumps.
In a recent statement, the RAC said that the two-week forecast for prices at the pump shows a reduction of almost 4p for petrol. The drop will be only about 2p for diesel. RAC is very confident that fuel retailers in the UK are going to pass these reductions on to motorists.
The RAC finished up by saying that wholesale prices have already dropped to 102p. These are levels that have not been seen since December of last year. The price of wholesale gas includes fuel duty but does not include VAT and other types of costs that arise from distribution. Thus, the cost of wholesale gas is not what consumers see at the pumps.