February saw the price of petrol and diesel tumble making for some of the biggest monthly reductions seen since the start of 2000, according to data from RAC Fuel Watch.
The average price of unleaded fell by 2.93ppl to 124.02ppl – its 19th biggest drop in a month – and diesel by 4.24ppl to 127.04ppl, the 11th greatest monthly fall seen since the RAC began monitoring fuel prices.
The RAC said Asda is leading the way among the big four supermarket fuel retailers by selling petrol for 116.78ppl – 3.5ppl less than than it was at the start of February and 3.5ppl cheaper than its closest competitor.
It also reduced diesel by 5.9ppl to 118.8ppl, which makes it 4ppl cheaper than its nearest rival. The average price charged for unleaded between all supermarket sites is 119.19ppl and 121.62ppl for diesel – around 5ppl less than the UK average prices.
The pump price reductions have been driven by a $10 slump in the price of a barrel of oil from a high of $60.28 on 20 February to $50.41 by the close of the month. Over the course of the whole month though the reduction was far smaller at just $3, with a barrel having started February at $53.48.
However, RAC fuel spokesman Simon Williams warned there could be pressures to push up the price of oil. He said: “The oil price has slumped due to the spread of the coronavirus prompting fears of slower global demand. This may well lead to a move from oil producer group OPEC and its allies to restrict production when they stage an extraordinary meeting in Vienna on Friday. If they decide to take action to prop up the barrel price it would very likely put an end to falling forecourt fuel prices.”