Key facts
- UK diesel averaged 197p a litre, 2p below October's record of £2, the AA said.
- Petrol fell 6p to 168p a litre from a peak of 174.7p in early October, the AA said.
- Wholesale unleaded fell from 77p a litre to 68p in the second half of October and sits below 62p.
- AA spokesperson Luke Bosdet said another 10p cut at the pump for petrol could be on the cards.
- Fed governor Christopher Waller said Hormuz insurance and ship-to-ship transfers were reportedly adding $20 to $30 a barrel to oil.
UK forecourt diesel averaged 197p a litre, 2p below October's all-time record of £2, the AA said, even as crude oil prices fell. Petrol has fallen 6p to 168p a litre from a peak of 174.7p in early October, which was the highest level since August 2022.
The AA described the diesel price as "dismal". Its pump-price spokesperson, Luke Bosdet, said petrol was already available below 160p in parts of northern England, Wales and Scotland, while London and the south-east showed no stations at those prices in the government's fuel finder data. "Some forecourts are still charging close to the peak prices of early October and, given how much wholesale costs have fallen since the middle of last month, that is unforgivable," he said.
Wholesale unleaded fell from 77p a litre to 68p in the second half of October and now sits below 62p. The AA said that could support another 10p cut at the pump for petrol. Diesel's wholesale cost is down about 4p a litre since mid-October, which Bosdet said could allow a further small reduction. By the AA's rule of thumb, each 5p cut at the pump reduces the cost of filling a typical 55-litre tank by £2.75.
Christopher Waller, a US Federal Reserve governor, told a conference in London this week that energy prices could remain "elevated". He said higher tanker traffic through the Strait of Hormuz carried a cost: "The insurance now needed for ships making this passage, and the ship-to-ship transfer of oil necessary to guard against Iranian attacks, are reportedly boosting oil prices by $20 to $30 a barrel." Waller added that limited refining capacity and other constraints were also affecting diesel production, and that elevated US diesel prices were not expected to moderate as readily as crude oil prices would in a more peaceful Middle East.