RAC fuel spokesman Simon Williams said: “After such a sharp
drop in the price of oil it’s right that pump prices start
falling, and quickly. We hope other retailers large and small
follow Asda’s lead by trimming their prices and delivering good
value to UK drivers.
“But despite these headline-grabbing price reductions, it
remains the case that the wholesale price of both petrol and
diesel has fallen so far that we really should be seeing far
deeper cuts at the pumps. Even with today’s cuts, we believe
there is scope for a further 7p to 8p to come off the price of
both fuels over the next fortnight – so we will be keeping a
close eye on what the supermarkets do in the coming days.
“The market is awash with oil, with the fall in demand
brought about by the coronavirus outbreak and new tensions
between Saudi Arabia and Russia. Collaboration between Russia and
OPEC, of which Saudi Arabia is a key member, on the quantities of
oil produced had helped to prop up the oil price in the last few
years, but with the apparent end of their pact it is difficult to
see oil prices rising very much in the next few weeks.
“Clearly, with all the current volatility this is no time
for the Chancellor to consider a hike in fuel duty at tomorrow’s
Budget.”
