UK petrol prices have fallen by 5p a litre, the AA has said, with further cuts possible if oil prices stay low. The average pump price of unleaded has dropped from 174.7p a litre on 5 October to 169.7p, taking £2.75 off the cost of filling a typical 55-litre tank.

The October peak was the highest petrol price since August 2022. The fall follows a sharp drop in wholesale fuel costs and in the price of Brent crude, which stood at around $90 a barrel on Tuesday morning after briefly dipping below that level for the first time since August.

Wholesale costs point to another 10p cut

The AA said the wholesale cost of unleaded had fallen from 77p a litre on 13 October to 68p by the end of that month, and had since dropped below 62p. On that basis, the motoring organisation said another 10p reduction in pump prices should be on the way, although it stressed that a further cut is not guaranteed.

Luke Bosdet, the AA's spokesman on pump prices, said: "If crude stays down, initial cuts of 2p to 5p a litre should reach supermarket pumps within days." He added that lower wholesale costs typically take two to four weeks to filter through, and that he would expect further reductions over the coming weeks if oil prices remain lower.

RAC figures show a steady fall

Figures from the RAC, reported on Tuesday, put the current average UK petrol price at 168.45p a litre and diesel at 197.27p. The RAC said unleaded had fallen 3.4p since the start of the month and 6.5p since the peak of 174.94p on 5 October, reached as the conflict between the US and Iran pushed oil prices higher.

A separate measure, the government's Fuel Finder UK price index, showed petrol down 5.6p a litre over 30 days when checked on 9 November. The AA said some communities were already seeing petrol below 160p a litre, although London and the South East stood out for not yet seeing those lower prices.

Diesel falling more slowly

Diesel prices have fallen more slowly than petrol. The AA said diesel was down 2p a litre, from 199.9p on 6 October to 197.9p, while its wholesale cost had fallen by around 4p a litre since mid-October, offering the possibility of a smaller further reduction at the pump.

The RAC said diesel had fallen 1.3p since the start of the month and 3p since its peak of 200.20p on 5 October. With Brent crude holding below $100 a barrel since last Wednesday, motorists may see more of the wholesale savings reach forecourts in the coming days, but the AA cautioned that the pace of cuts will depend on whether crude stays down.