Thursday 28 July 2016 6:08 am

RAC calls for petrol price drop as oil prices soften

The RAC today called on forecourts across the country to cut petrol prices, saying they should "play fair" given the recent dip in oil prices.

It warned them against taking advantage of the public's expectation for fuel prices to rise following Britain's decision to leave the European Union last month.

The motoring body wants a 3p cut, which would take average prices down to 109p per litre. It said that wholesale prices have been falling for nearly a month, with petrol and diesel currently standing at 103.65p and 104.32p respectively. 

Read more: Crude oil surge pushes up the price of petrol at the pumps

Oil fell to a fresh two-month yesterday, after US government data stoked fears that the market recovery is coming along slower than expected.

RAC fuel spokesman, Simon Williams, said: "Retailers have a reasonable recent record of passing cost savings on, and we would like to think this is a blip rather than a new norm."

Read more: RAC says petrol prices below £1 a litre "distant memory"

"With millions of families currently away on holiday or soon to leave, combined with a boom in staycations this year, a cut now would be widely welcomed and would give motorists confidence that retailers are not keeping prices artificially high."

The Petrol Retailers Association said after the referendum result that the weak pound would make it more expensive for retailers to buy wholesale fuel which is quoted in dollars.