Fuel prices continue to fall but diesel ‘still seriously priced’

Fuel prices have dropped for a fifth consecutive month, but the inflated price for diesel remains “utterly galling” for motorists, the RAC has said.

According to the firm’s ‘Fuel Watch’ monitoring, the average price for a litre of petrol at the end of March was 146.5p – a drop of just over 1p in the month. It’s the lowest prices have been since January 2022.

Compared to early November 2022, when petrol reached a high of 166p per litre, drivers are now saving 20p per litre, equating to an £11 fuel saving on a typical 55-litre family car, which now costs £80.57 to the brim, down from £91.30.

Diesel has fallen by 4p in March alone, with an average price of 162.94p per litre – the lowest figure for the fuel since March 2022. Diesel has dropped by 27.5p since November, equating to a £15 saving on a full tank, which now costs £89.62, down from £104.77.

While the drop in diesel looks significant, the RAC says the fuel is ‘still seriously priced’, as petrol and diesel wholesale prices have been similar for more than a month, with diesel now being cheaper.

The retailer margin per litre of diesel is now an average of 21p – triple the long-term average of 7p.

RAC fuel spokesman Simon Williams said: “The fifth consecutive fall in the price of fuel in as many months is without doubt good news for drivers, but those who run diesel vehicles should have enjoyed far bigger cuts at the pumps than they have actually seen.

“Knowing the average price in Northern Ireland is 10p cheaper at 152.78p is utterly galling for those on this side of the Irish Sea who rely on diesel, whether that’s for personal or business use.

“While retailers are free to charge what they like for fuel we feel there should be an obligation on those which sell the most, and therefore buy most frequently, to closely reflect what’s happening on the wholesale market.”