Christmas savings on the forecourt
The RAC has urged supermarkets to ‘do the right thing’ this Christmas by reducing prices at the pump to £1 a litre.
Retailers are making savings after the cost of crude oil dipped below $40 per barrel for the first time since February 2009, when OPEC delegates dismissed cutting production to stabilise price.
The RAC believes this should lead to reductions of 3p and 5p a litre for petrol and diesel respectively. That would see average prices fall to 103p per litre for petrol and 104p per litre for diesel – which hit a six-year low last Friday when the average price was recorded at 109.18p.
RAC fuel watch spokesman Simon Williams said, ‘With the price of wholesale unleaded dropping due to oil falling below $40 the climate is right for £1 a litre petrol, all we need is for the supermarkets to do the right thing and embrace the season of goodwill by passing on those savings at the pump to make Christmas that bit cheaper for everyone.
‘Motorists have already enjoyed petrol at under £1 as one supermarket cut prices at its 277 nationwide forecourts as part of a three-day promotion at the end of November, but this should now become a common sight across the country.
‘If retailers don’t pass on the savings quickly, they will be giving themselves an unpopular Christmas boost to profits by pocketing the extra margin when they should really be passing this on to their customers instead.’
However, Simon doesn’t think this gift will just be for Christmas.
He explained, ‘The long-term outlook is for the oil price to stay low. OPEC is not due to meet again until June 2016 so unless an extraordinary meeting is called, it is anticipated production will continue to outpace demand and in turn keep wholesale fuel prices low.’