Can we expect prices to drop even further or will they slowly go up once more? We had one of the steepest price rises seen since 2000 back in April and it seems it won’t be heading that way soon unless the current tensions in Iran increase or create a more unstable environment.
Current price outlook
Asda, Morrisons and Sainsburys have all recently announced two price drops, the first started on the 6th June and it brought down prices at Asda to 126.7ppl for unleaded and 128.7ppl for diesel. The second drop was even more drastic, bringing it down further to 123.7ppl on unleaded and 124.7ppl on diesel.
Asda Senior Fuel Buyer, Dave Tyrer said “We’re pleased to once again lead another fuel price cut and to help our customers’ hard-earned cash go a little further. When filling up at an Asda petrol station you will pay no more than 124.7ppl on diesel and 123.7ppl on unleaded which will be a welcome boost for the millions of drivers across the country.
“Compared with a week ago, we’ve saved drivers 7ppl on diesel or £3.85 when filling a 55-litre tank”
Both Morrisons and Sainsbury’s matched the drops pretty quickly, but as their pricing strategies are different the drops appear differently.
In a press release, Morrisons announced that it was cutting the cost of diesel by up to four pence-a-litre and unleaded by up to three pence a litre from the 15th June at all of its UK petrol stations.
David Pegg, Fuel Buying Manager for Sainsbury’s, said: “As we head into the busy summer months we are committed to helping our customers live well for less, whether they’re stocking up on groceries or refuelling their cars. That’s why we’re dropping the price of diesel by up to 4p per litre and unleaded petrol by up to 3p per litre across our forecourts from 15th June . This is the second time we’ve dropped prices on fuel in as many weeks”.
The story before
Before these price drops at the beginning of the month, prices were at highs nearing 130ppl on unleaded and almost 137ppl on diesel, according to UK averages. There was also a greater disparity between petrol and diesel, which has now been brought to around 2ppl difference.
Oil prices had been higher a month ago, and from the end of April to Mid-May was sitting at around $72 a barrel, it fell $10 a barrel in mid-June, hence the price drop we’ve seen now. It normally takes around two-three weeks for oil price drops to be felt at the pumps, which is why any drops called for as soon as the oil price goes down never happens. It is only when the wholesale fuel price goes down do we see an immediate drop at the pumps.
Instability in the markets from Iran and tensions in the Middle East escalated fuel prices but it has since dropped. It is expected that by the end of the year we could be seeing oil at much higher prices at up to $90.
What can we expect soon?
While the oil price stabilised for a week or so at the low $60 a barrel mark, they’ve started to rise in the past few days, so this current price spread may not be around for long so take advantage of it while you can.
The price at the pump may drop a few pence more but it seems unlikely to be any more drastic drops for the next few weeks as the oil prices haven’t fallen below the $60 barrel mark. Hopefully, there will be a period of stability and we won’t see any major rises or falls but as with anything geopolitical that is highly unlikely.
A new prime minister may cause Brent Crude to increase slightly as the world waits to see what happens with Brexit, trade agreements and response to America’s trade sanctions. The increasing pressure from America on China and the Middle East may also drive up prices and we may even see a higher oil price soon as the attacks in Iran continue.
A new prime minister would be fat lot of use in this or any other respect given the poor choice we are being offered.
To the point where I am just not going to vote next time round – a Marxist racist or a lying blonde idiot. No thanks to either
If you don’t vote yo give the ground to the very people you don’t want in as their die hard voters will sweep the board. Not a good strategy.
Please use your vote,just spoil the paper with X on all of them!
Will be one of the ways these lazy useless politicians can get the message!
Agree with you
Any further idiotic behaviour by our “beloved” MPs, will cast doubt on our ability to pay fuel suppliers.
Many people have said they will not vote again.
Perhaps voting for the raving looney Party will be a better option.
That’s who get my vote now.
@ R Williams – sadly no candidate in our area.
And if the Monster Raving Loony Party win an election then you could be quid’s in, as just heard that the odds are currently 1m to 1! Worth a quid I think! 🙂
vote BREXIT PARTY and we will leave the EU without the money backed Hunt who is a remainers to the core and will just keep lying like May to keep us in, at least Boris will do some good, I am voting leave uk, out still means out..
your spot on
With all the headlines about fuel price drops at the main supermarkets, I checked prices and as of today (compared to about 2 weeks ago), they are NO DIFFERENT for the most part, in fact in my parents neck of the woods, prices have GONE UP by 1p a litre in that time. Not sure where these ‘price drops’ are being applied, but it ain’t in Hertfordshire.
Hertfordshire is somewhat unique, in the sense that it’s a very expensive place in terms of property/land/rental costs, and generally attracts London weighting for employees, but outside of Watford it doesn’t quite have the footfall to allow petrol pumps to be able to afford to keep fuel margins as low as other places. Further south (London) there’s higher demand, and further north (cheaper parts of the home counties and if you’re heading further still, the Midlands) the overheads are low enough to maintain the lower margins.
Filled up in Keighley (W. York’s) today – unleaded 119.9 ppl.
Then stay there and don’t come to Scarborough. 129.9 unleaded and 133.9 diesel here this morning
Yeah!!! your probably right, had a lady friend in Scarborough and she was expensive too
BE WARY & STILL SHOP AROUND !
The price reductions do not universally apply -We have just paid £1.269 /l for diesel in Sainsbury`s in Stoke
I can never understand these press release/publicity statements regarding petrol prices, from the big supermarkets.
They say “universal” price drops, but when you visit their forecourt, it is often still at the higher price.
I’ve also noticed a recent trend at Tesco not to display their prices at the roadside, so you do not know what you will pay until you pull up at the pump!
Tesco’s will sell you rusty water
Tesco are still charging 1.29.9 per Ltr for Diesel, while and Asda 1.24.7 in my home town of Pontypool.
Tesco always ripping us off in this area, and people ought to boycott them, its the only way.
Fake news again !!! The highest price in our local Tesco (Worcester) was £125.99… Its just oozed down to £123.99 … So where are these price DROPS ?? If had DROPPED to £121.99 that would have been a noticeable change ..
Huw, it’s only 1.23.9 in bamber bridge sainsburys. Oh its grim up north…..
121.9 in Bellshill, Scotland.
The rogue government in Washington DC is the root cause of unsettled conditions in the international oil market, supported like a lapdog by the useless puppets in the UK Foreign Office.
Earlier this week I paid £1.249 for diesel in Tesco, York, and when I got back home diesel locally in North Hampshire was £1.339 at Shell & Texaco. I’ve often wondered why supermarket prices are less expensive. Is it because both normal Shell & Texaco fuels are above the standard grade sold by the supermarkets?
Fuel prices within a radius of only 25 miles vary in my area by at least. 10 pence a litre! Why is that I wonder?? How manipulative can the supermarkets and petrol brands be.
I can remember not two years ago when prices dropped below £1.00 per litre. We are being led by our noses and the Government is rubbing its hands together
A shuttle run with EV / Hydrogen Vans and trucks based on the outskirts of the City will do it but it will cost. It will also save the small businesses from the enormous cost of the changeover that is coming sooner than we think and as for taxis look at the new London Cab.
Charles, if you go down the m11, you will see a large yard on the left. It was designed to do just this an keep big vehicles outside London. One problem is you need 26 transit Van’s to carry one hgvs load x by how many thousand hgvs in London? Plus lots of large loads won’t fit on a van and a van can’t be tipped on a dock bay. Total non starter really.
Let’s have hydrogen fuel cell cars let alone vans.
Look how long it took to get diesel on forecourts. Surely existing forecourts can be adapted to supply hydrogen given time.