Fleets are benefiting from fuel price cuts resulting in some of the biggest monthly reductions seen since the start of 2000 and the impact of the coronavirus on the wholesale cost of oil could lead to further falls.
The average price of a litre of diesel has fallen by 4p in recent weeks and unleaded petrol is down by 3p a litre helped by two rounds of pump price reductions by supermarkets. The average price of a litre of diesel is now 127.04p with a litre of unleaded petrol costing 124.02p, according to the RAC.
The pump price reductions were driven by a $10 slump in the price of a barrel of oil from a high of $60.28 on February 20 to $50.41 by the close of the month.
The oil price, said the RAC, had slumped due to the spread of the coronavirus prompting fears of slower global demand.
However, action could be taken by oil producing countries to counter the reduction. RAC fuel spokesman Simon Williams said: “This may well lead to a move from oil producer group OPEC and its allies to restrict production. If they decide to take action to prop up the barrel price it would very likely put an end to falling forecourt fuel prices.”