29 July 2024

Fuel price drop in June for both Petrol and Diesel

The recent reduction in pump prices, as reported by the RAC, indicates a welcome relief for UK drivers. In June, petrol prices fell by 3p per litre and diesel by nearly 4p per litre.

By the end of the month, the average price of petrol was just under 145p per litre, a decrease from 148p at the start of June. Diesel prices also saw a notable drop, falling to just under 150p per litre, down from 153.74p per litre.

For consumers, this translates to a reduction in the cost of filling up a family car. Filling a 55-litre petrol tank now costs around £79.76, while the same capacity diesel tank costs about £82.57. Despite these reductions, the RAC contends that fuel prices remain disproportionately high on forecourts in England, Wales, and Scotland.

Drivers in Northern Ireland enjoy comparatively lower prices, with petrol averaging 140.5p per litre and diesel at 142p per litre, which are 4.5p and 8p cheaper than the UK-wide averages, respectively. In June, the big four supermarkets, Asda, Morrisons, Sainsbury’s, and Tesco, reduced their fuel prices significantly, with an average reduction of 4p per litre for both petrol and diesel. This brought the average cost per litre down to 142p for petrol and 147p for diesel at these supermarkets.

However, there is considerable variation in pricing between different locations of these supermarkets:

• Tesco: The price difference for petrol between the cheapest and most expensive sites is just 6p.
• Morrisons: There is a 10p difference in petrol prices between sites.
• Sainsbury's: The price variation for petrol is 13p.
• Asda: The variation is the highest, with a 35p difference in petrol prices, influenced by Asda's acquisition of the 350-site Euro Garages portfolio, which includes many non-supermarket forecourts, bringing its total to 665 sites.

These reductions and variations highlight the competitive nature of fuel pricing among major retailers and the impact of their strategic acquisitions on pricing consistency.