Oil prices have reached a record low as a result of the coronavirus crisis. However, this doesn’t necessarily mean that prices will fall at the pumps…
Record Low Prices
Oil prices have fallen to a record low, reaching less than £1 per litre. However, the RAC has warned motorists that they’re unlikely to notice much of a difference at petrol station pumps. The price of a barrel of crude oil fell by an incredible 66% in March; reaching the lowest level recorded in the last 18 years. As a result, the cost of a litre of unleaded fuel dropped from 122.72p to 113.54p. That’s a fall of 9.1%. Some supermarkets have also slashed their prices; lowering them to 104p and 111p for petrol and diesel respectively. Asda was selling petrol for 102.7p and diesel for 108.7p at the end of March. Despite all of this, the RAC believes it’s unlikely that consumer prices will fall below £1 per litre.
…But Not For Drivers
Fuel retailers are struggling as demand for petrol has plummeted by a crippling 75%. Its also down by 71% for diesel. This is due to the fact that road travel has dropped by 73% since lockdown measures were introduced in March. The Petrol Retailers Association (PRA) has said that 1,000 independent retailers could permanently close as a result of the coronavirus crisis.
RAC fuel spokesman Simon Williams commented on the situation. He said, “the oversupply of oil continues to suppress the barrel price and it’s clear now that plans by some of the world’s largest oil-producing nations to limit production haven’t yet been enough to lift the price – there’s currently too little demand for oil in the first place”. In other words, motorists are more likely to be making savings by simply staying home and not driving than facing lower prices at forecourts. Whether this changes anytime soon remains to be seen. It’ll largely depend on how the government goes about relaxing lockdown measures and when. Until then, drivers can save money by driving smoothly, keeping their cars light and by planning their routes as they usually would.
Diesel And Petrol Prices Could Soon Reach £1 At Fuel Stations – https://autoserveclub.co.uk/blog/diesel-and-petrol-prices-could-soon-reach-1-at-fuel-stations/
Independent Petrol Stations Face Extinction Due To Coronavirus – https://autoserve.co.uk/motoring-news/independent-petrol-stations-face-extinction-due-to-coronavirus/