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

Tom Tugendhat

Two top Tories back Tom Tugendhat to be next Conservative leader

Shockat Adam

Independent MP who dedicated surprise win to Gaza 'hit with death threat'

The Tavistock Centre

'No evidence' curbs on puberty blockers have led to rise in suicide among trans children, report finds

Thousands of flights were cancelled across the globe on Friday.

Boss of company behind global IT outage 'sincerely apologises' for worldwide chaos sparked by software bug

President Joe Biden

Joe Biden insists he will stay in race, as president's family 'discuss exit plan from election campaign'

A burnt out car in the Leeds suburb of Harehills, after vehicles were set on fire and a police car was overturned as residents were warned to stay home following an outbreak of disorder on Thursday evening. Picture date: Friday July 19, 2024.

Council to hold 'urgent review of 'family matter' after rioters wreak havoc in Leeds on night of 'shocking' carnage

Brendan Cole slaps his partner Fiona Hill's bottom three times

Strictly pro dancer slaps female partner's bottom three times in freshly surfaced footage, after two dancers leave show

Trump gunman researched Royal family member during planning for assassination attempt

Donald Trump gunman 'scoped out Kate Middleton and had pictures of her on his phone' before failed murder attempt

Thousands of flights were cancelled across the globe on Friday.

Misery for holidaymakers as 4,000 flights grounded by IT outage that sparked chaos, and recovery 'could cost billions'

Christina Sandera and Clint Eastwood in 2018

Clint Eastwood's partner Christina Sandera dies aged 61, as 94-year-old Hollywood icon gives poignant tribute

Israeli occupation of Palestinian territories is unlawful, the International Court of Justice has ruled

Top UN court rules Israeli occupation of Palestinian territories 'unlawful', as Netanyahu slams 'false decision'

Over 4,000 flights have been delayed or cancelled today.

Has your flight been affected by the global IT outage? Can you claim compensation?

Friday was the hottest day of the year so far - but the mini heatwave will end soon

Exact date mini-heatwave to end, as Friday becomes hottest day of the year so far with temperature close to 32C

Ben Ross has been missing since July 10

Mum of missing Brit Ben Ross to fly to Majorca for desperate search as police issue statement

Shaikha Makhra announced her split on Instagram

Dubai princess announces divorce from husband via Instagram 'as he is occupied with other companions'

Thousands of flights where cancelled across the globe on Friday.

Worldwide IT outage could last 'days' as flights grounded, shops closed and operations cancelled