Wednesday 4 March 2020 1:01 am

Fuel prices fall on back of coronavirus crisis

Coronavirus fears pushed prices lower on UK petrol station forecourts in February with some of the biggest reductions in diesel since 2000.

According to data out today by the RAC, average UK unleaded petrol fell 2.93p to 124.02p a litre by 29 February, compared to 126.95 at the start of the month.

Diesel also fell over the same period by 4.24p from 131.28p to 127.04.

Read more: Oil prices drop again as coronavirus cases escalate

RAC fuel spokesman Simon Williams, said: “The oil price has slumped due to the spread of the coronavirus prompting fears of slower global demand.”

The price hit a record low last week as the possibility grew of a world economic crisis caused by the dampened demand for oil due to the virus.

It had fallen $10 from a high of $60.28 on 20 February to $50.41 by the end of the month.

However, Williams warned the situation could change.

“This may well lead to a move from oil producer group OPEC and its allies to restrict production when they stage an extraordinary meeting in Vienna on Friday, Williams added.

Sign up to City A.M.’s Midday Update newsletter, delivered to your inbox every lunchtime

“If they decide to take action to prop up the barrel price it would very likely put an end to falling forecourt fuel prices.

Although the cost of filling a 55-litre family car with petrol is £1.61p lower now than in January, £2.33p for diesel, Williams said this is still too expensive.

Asda has led the way in current reductions with 116.78p and 118.8 for petrol and diesel respectively.

The fall in wholesale unleaded price to below 90p before, delivery, retail margin and VAT is the lowest since January 2019.

Read more: Federal Reserve slashes interest rates over coronavirus fears

The diesel wholesale price fell to 92p a litre, the lowest since August 2017.

Share:
Tags: