Diesel price falls by record 12p in May, but RAC says prices should drop even further

3 June 2023, 09:09

Diesel prices have dropped by a record amount
Diesel prices have dropped by a record amount. Picture: Alamy

By Kit Heren

The price of diesel dropped for the seventh straight month in May, by a record 12p on average.

Listen to this article

Loading audio...

The RAC said the average price of the fuel at UK forecourts dropped from 158.9p to 147.0p in May.

Despite this being the largest monthly reduction since the motoring services company began tracking fuel prices in 2000, it believes the cut should have been more significant to fully reflect changes in the wholesale market.

The price drop has lowered the cost of filling a typical 55-litre family car by around £6.50.

May was the seventh consecutive month in which pump prices fell.

The average price of a litre of petrol dropped by more than 3p from 146.5p to 143.3p last month.

Listen and subscribe to Unprecedented: Inside Downing Street on Global Player

Diesel prices have been dropping for months
Diesel prices have been dropping for months. Picture: Getty

On May 15, the Competition and Markets Authority watchdog reported that indications show higher pump prices in 2022 "appear in part to reflect some weakening of competition".

RAC fuel spokesman Simon Williams said: "After calling for big pump price cuts for weeks, we were pleased to see that May was the month where this finally happened.

"The fact it appears to have been prompted by the Competition and Markets Authority's mid-month announcement about weakening competition in fuel retailing is surely not a coincidence.

Read more: Asda cuts fuel prices amid claims supermarkets are keeping price high

Read more: Drivers could save as much as 15p a litre on fuel under government plans for 'Pumpwatch regulator'

The RAC said prices should be falling further
The RAC said prices should be falling further. Picture: Getty

"A 12p reduction in the price of diesel in one month is something we haven't seen in nearly 23 years of monitoring prices.

"But despite this, it's still galling to see that a litre of diesel is 8.5p cheaper in Northern Ireland than it is in the rest of the UK.

"This points to a more transparent and competitive fuel market there, something drivers in the rest of the UK would very much like to see, particularly with money being so tight in the cost-of-living crisis."

Fuel prices rose fast at the start of 2022, in part because of the war in Ukraine and sanctions on Russian businesses. This helped drive soaring inflation.

Inflation has begun to ease in the UK recently in recent weeks, partly because of falling energy costs, although food prices are still high.

The RAC's calls come after ministers considered the possibility of introducing a 'PumpWatch' regulator.

Under the plans, reported in January, retailers would face pressure to make sure that what drivers pay accurately reflects wholesale costs.

It is believed the PumpWatch system would be voluntary but retailers who fail to lower their prices in relation to wholesale costs could even be named-and-shamed under the plans.

More Latest News

See more More Latest News

A picture of Alexei Navalny next to flowers in front of the Russian embassy in Berlin

Body of Russian opposition leader Navalny handed over to his mother, aide says

Breaking News

Alexei Navalny's body handed to mother after 'three-hour ultimatum' over late Russian opposition figure's burial

French President Emmanuel Macron at the agriculture fair

Macron booed by French farmers as he visits Paris agricultural fair

Volodymyr Zelensky

Western leaders arrive in Kyiv as Ukraine marks invasion anniversary

Lee Anderson has been suspended for his comments about Sadiq Khan

Lee Anderson suspended from Conservative Party after claiming 'Islamists have control of Sadiq Khan'

Wet weather is expected on Sunday and Monday

Fears of travel chaos on Sunday and Monday amid heavy rain, as yellow weather warning issued

Jesse Baird and Luke Davies have not been seen since Monday

Police in desperate riverbed hunt for missing TV presenter and boyfriend, as cop ex-lover accused of murder

Yulia Navalnaya

Navalny widow accuses Putin of mocking Christianity for refusing to return body

Charles has shared a message of support for Ukraine

King Charles hails 'heroism' of Ukrainians as world leaders mark second anniversary of Russian invasion in Kyiv

Junior doctors have gone on strike again

Junior doctors walk out for five-day strike amid long-standing pay row, in latest round of NHS industrial action

Sarah Oliver was killed in the collision

Woman killed by driver who sped through red light while on her phone, as she is jailed for nine years

Spain Building Fire

10th body found in charred remnants of Valencia apartment building

Luiz Inacio Lula da Silva

Brazilian president accuses Israel of committing genocide in Gaza

Hamilton Palace is said to be abandoned

Crumbling Sussex mansion abandoned by millionaire developer 'is UK's biggest slum' and is 'magnet for drug abuse'

Grant Shapps has vowed that Britain will back Ukraine 'to the end'

'We will be there to the end': Shapps vows UK will back Ukraine until war is over, as Britain gives £245m military aid

LBC spoke to a mother and daughter from the war-torn city of Mariupol

Ukrainian refugees accuse Home Office of becoming ‘tired of Ukraine’ after altering resettlement schemes