Diesel Stays Near £2 a Litre While Petrol Prices Ease
Drivers who fill up with diesel have seen little relief. A litre now costs close to the all-time high set last month, even though oil has become much cheaper.
The strain lands on households and businesses, which were already struggling with the cost of fuel.
Cheaper petrol, but not everywhere
The AA's pump-price spokesperson Luke Bosdet describes the picture as mixed. The government's fuel finder data already shows petrol under 160p in some areas.
Those bargains sit in northern England, Wales and Scotland. London and the south-east show none of them, Bosdet said.
Some forecourts still charge close to the early-October peak. Wholesale costs have fallen a lot since mid-October, and Bosdet called such pricing "unforgivable".
What wholesale prices suggest
Petrol averages 168p, down 6p from the early-October peak of 174.7p, which was the highest since August 2022. Wholesale unleaded dropped from 77p a litre to 68p over late October and is now under 62p. The AA says another 10p off the pump price could be on the cards.
For scale, each 5p cut at the pump takes £2.75 off filling a typical 55-litre tank.
Diesel averages 197p, which the AA calls "dismal". That is only 2p under the £2 record. Wholesale diesel is down around 4p a litre since mid-October, and Bosdet said that leaves room for a further small cut.
A Fed governor expects energy costs to stay up
Christopher Waller, a US Federal Reserve governor, spoke at a London conference, saying energy prices could remain elevated.
He linked this to the strait of Hormuz. More tankers are using it, but at a price. Insurance for the passage and ship-to-ship oil transfers, a guard against Iranian attacks, are reportedly adding $20 to $30 to each barrel.
Diesel has a further problem, Waller said: limited refining capacity and other constraints. In the United States, diesel prices are not expected to ease as readily as crude would in a calmer Middle East.
Source: The Guardian