Diesel prices drop by record 12p a litre
Tue, 06 Jun 2023
Diesel prices in the UK saw their biggest drop ever recorded in May, according to data from RAC Fuel Watch.
The average price of diesel fell by 12p per litre, a decrease that hasn't been seen in the 23 years the RAC has been tracking fuel prices.
The decrease in diesel prices from 158.91p to 146.99p meant that filling up a standard 55-litre family car became £6.50 cheaper.
In addition, petrol prices also saw a decrease of 3p, dropping from 146.35p to 143.26p, resulting in a saving of £1.70 per tank compared to the beginning of the month. This marks the seventh consecutive month of declining pump prices.
The current diesel price is now 52p lower than the record high of 199p per litre seen last summer, translating to a £28.60 saving per tank.
Unleaded petrol prices are also significantly lower, with a reduction of 48p per litre compared to its record high of 191.5p. This equates to a saving of £26.40 per tank.
Despite the record-breaking drop in diesel prices, the RAC believes the reduction is long overdue and not as substantial as expected.
The wholesale price of diesel has been lower than petrol for the past ten weeks, leading the organization to argue that the cut should have been more significant.
The price drop was largely driven by the major supermarket chains, which lowered prices by nearly 14p per litre. Supermarket diesel now costs an average of 142.96p per litre, down from 156.69p.
However, the reduction in petrol prices by the supermarkets was less significant, with only a 2.4p decrease, compared to the UK average of 3p.
Asda had the lowest diesel price at 143p per litre, but this is still 4.5p more expensive than the average in Northern Ireland. Asda also offered the lowest petrol price at 139.89p per litre, which is similar to the price paid by drivers in Northern Ireland, where supermarkets have a less dominant presence in fuel retailing.
"After calling for big pump price cuts for weeks we were pleased to see that May was the month where this finally happened. The fact it appears to have been prompted by the Competition and Markets Authority’s mid-month announcement about weakening competition in fuel retailing is surely not a coincidence," said RAC fuel spokesman Simon Williams.
"It’s still galling to see that a litre of diesel is 8.5p cheaper in Northern Ireland than it is in the rest of the UK. This points to a more transparent and competitive fuel market there, something drivers in the rest of the UK would very much like to see, particularly with money being so tight in the cost-of-living crisis."
"We’re sure retailers in Northern Ireland are still making money – they’ve just done the right thing for their customers by moving prices down as wholesale costs have fallen. The fact supermarkets have less of a stranglehold on fuel retailing there may have something to do with it."
The RAC is hoping price reductions will continue and says the market ought to be heading for an average diesel price of 137p, similar to what drivers are paying in Northern Ireland - and a price the UK as a whole hasn’t seen since September 2021.
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