Petrol and diesel drivers are being warned of potential fuel price concerns despite optimism about the lowest costs at the pumps in three years.
According to the latest data from RAC Fuel Watch, a litre of petrol now costs 135.53p, while diesel drivers are paying an average of 140.2p per litre.
These are some of the lowest prices seen at the forecourts since the start of 2021 as experts and drivers alike welcome the positive price drops amid the cost of living crisis.
The decline is largely due to an oversupply in the wholesale market, forcing the price of Brent crude oil down and strengthening the British pound against the US dollar.
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Petrol and diesel prices peaked in the summer of 2022
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The RAC has forecast that the price of unleaded and diesel will continue to fall in the near future, although some experts fear prices could rise again.
According to experts from PetrolPrices, the cost of unleaded at forecourts around the UK will not continue to fall which could impact many drivers.
The latest data from the company found that further significant price drops are unlikely, citing the stabilisation of Brent crude oil, which has rebounded to $75 (£56.20) per barrel.
It also noted that the speed at which prices have dropped has slowed since mid-July when prices were around £1.45 per litre.
Analysis from PetrolPrices suggests without continued declines in wholesale oil prices, the “likelihood of significant cuts at the pump is low”.
Because of this, drivers are urged to shop around for their petrol and diesel to ensure they are getting the cheapest prices in their local area.
Data shows that Morrisons is generally the cheapest major retailer for fuel, having been one of the most proactive supermarkets in undercutting competitors.
Compared to the other “big four” supermarkets in Asda, Sainsbury’s and Tesco, Morrisons consistently aims to sell its fuel for one penny less per litre than its rivals.
Prices also vary dramatically across the nation, with London generally being the most expensive for unleaded, while Northern Ireland remains the cheapest.
PetrolPrices stated: “The gap between the two has narrowed from 8p per litre in May to 5.5p per litre in September.
“Despite the recent drops, unleaded prices are still down by 13 per cent compared to this time last year, but with 56 per cent of the overall cost still made up of VAT and fuel duty, significant further reductions may be hard to come by.”
By using price comparison tools or apps, drivers can also see if any independent forecourts in their area is undercutting other major retailers.
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Morrisons is consistently one of the cheapest supermarket forecourts for fuel
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Drivers in Northern Ireland continue to benefit from the Consumer Council’s Fuel Price Checker, which ranks areas of the country by their average, cheapest and most expensive petrol and diesel costs.
The cheapest average cost for petrol can be found in Strabane at just 126.3p, while diesel drivers in Omagh will be charged £1.29 for one litre.
