The RAC is urging supermarket fuel retailers to make bigger cuts to the price of diesel following this week’s 2p a litre reduction at the pump.
RAC Fuel Watch data shows the wholesale price of diesel has now fallen 6p a litre lower than petrol, meaning there is scope for at least another 3p a litre cut.
RAC fuel spokesman Simon Williams said, “A fundamental change in the fuel market is taking place as a result of Saudi Arabia opening two new refineries last year geared to the production of refined oil products, including diesel. Saudi Arabia had previously concentrated on exporting crude, leaving refining to other countries, but greater European demand for diesel has led the kingdom to increase its refining capacity to create a profitable additional source of income.
“We expect this increase in diesel production to have a long-term positive effect on pump prices. If retailers operate transparently we will see reductions in the wholesale price of diesel passed on at the forecourt. This should mean diesel will soon be sold for the same price as petrol, or less just as it is in other countries around Europe.
The RAC’s Fuel Watch report for June showed the wholesale price of diesel was 1p to 3p a litre lower than petrol throughout the month, yet the average price of a litre of diesel at the pump is 120p, compared to 117p for petrol.