Will petrol and diesel prices continue to fall?

Business drivers across Britain have been able to enjoy lower fuel costs throughout 2015 – but what will happen to our pump prices in 2016?

The cost of the UK’s diesel has fallen dramatically since July, by around 7.4p a litre. At its peak in June diesel was selling at 121p. At the time of writing this, the UK average was 110.7p. That equates to major savings for high-mileage commercial drivers.

Petrol prices have also fluctuated this year. In recent months they have fallen slightly again. The current price of around 109p is another big saving, on June’s high point of 117p.

This autumn we’ve seen that the unwarranted discrepancy between diesel and petrol prices has, at last, almost disappeared.

In the coming weeks some experts predict more reductions as the wholesale price has fallen again. But in the coming months the picture is less clear.

Some economists see the fuel supply glut continuing, because of China’s declining economy and reduced demand. This suggests continued low prices in 2016.

Other experts warn that the market will adapt to the changing pressures. They suggest oil prices have bottomed out and the cost of road fuel will now stabilise at a profitable level for the producers – although this may not happen until 2017.

Nevertheless, the outlook is for continued low fuel prices until the end of the year.

Note, however, that British road fuel is still among the most expensive in the world. Figures from the AA show that unleaded costs 81p a litre in Bulgaria, Poland and Hungary, and just 42p a litre in the USA. Diesel is 44p a litre in the US and 87p in France.

  • On present figures, garages in the North have the highest prices for unleaded at 111.7 ppl. Wales and the East Midlands have the lowest unleaded at 111.0 ppl.
  • Meanwhile the average pump in East Anglia has the highest diesel price of 111.1 ppl while Yorkshire & Humberside has the cheapest diesel at 110.0 ppl.