Fuel prices fall even further in May, but rise may be imminent
05 June 2020
Author: Illya Verpraet
The price of petrol fell by a further 2.1p per litre in May, while diesel fell by 2.7p, but with global lockdowns easing, the low prices may not last much longer.
The data from the RAC shows that fuel prices are still historically low, with a 55-litre tank of petrol costing on average just £58.20 on 21 May. Supermarkets, as usual, have even lower, with petrol available at around £1 per litre.
Global oil prices are starting to rebound, however, and this is likely to be reflected in prices at the pump soon. In fact, prices already rose slightly during the last week of May.
RAC fuel spokesman Simon Williams said: "There's no doubting that, as the lockdown is eased slightly in different parts of the UK and drivers begin to travel more often, it's currently cheaper to fill up now than it has been since 2016.
"How long these lower pump prices remain for, however, is debatable and is largely dependent on events taking place thousands of miles away from the UK. The impact of the coronavirus on world travel and economic activity has dramatically reduced the global demand for oil, which is forcing major oil producing nations such as Saudi Arabia and Russia to desperately agree production cuts to shore up the barrel price.
"How far they go with these cuts, and how quickly, will be crucial in determining what happens with prices at the pumps over the next few months. Last month, as we expected, the oil price began to creep back up. If this continues in June, a rise in the cost of filling up is almost inevitable."