But the RAC still thinks prices are slightly too high.
The organisation’s Fuel Watch figures, which track the price of petrol and diesel across the UK, revealed a 1.5p drop in the cost of an average litre of unleaded. The fuel averaged 126.42p per litre at the end of October, having started the month at 127.99p a litre.
It’s the third month in a row that petrol prices have fallen, and it means the cost of filling a typical family car’s 55-litre fuel tank has now fallen below £70 for the first time since March. At £69.53, the fill-up is now 86p cheaper than at the beginning of October.
At the same time, diesel prices also sank by 1.59p per litre, cancelling out a marginal price rise last month. Now, the average litre of diesel costs 130.49p, meaning a 55-litre fill will cost a little less than £72.
Although the RAC welcomed the news, the organisation’s fuel spokesman, Simon Williams, said there could have been larger cuts. The RAC last month criticised petrol stations for charging “too much” for fuel, given the falling wholesale prices (the amount for which retailers buy the fuel). Back then, the organisation claimed petrol prices were up to 7p per litre more than they “should be”.
“It’s clearly good news for drivers that pump prices reduced in October,” said Williams, “but it’s disappointing they haven’t fallen further given the conditions were so favourable with the price of oil averaging under $60 a barrel and the pound strengthening to $1.29.
“In the middle of the month we called for a significant cut as we saw petrol was up to 7p a litre too expensive. The supermarkets responded with a round of price cuts, but most only decided to knock 2p a litre off unleaded. While this was positive we feel they could have gone quite a bit further. This is borne out by the average price only dropping just over a penny since then.
“As things stand, both petrol and diesel are still 2p too expensive and should really be reduced. Sadly, we suspect this is extremely unlikely as the wholesale market is now beginning to go the other way which will start to eat into the accumulated saving that should have been passed on to drivers before.”