Record 12p drop in diesel price still leaves UK behind Northern Ireland

 

UK motorists saw the largest ever monthly reduction in diesel prices in May, with the cost dropping by an unprecedented 12p a litre, according to RAC Fuel Watch data.

Despite this, questions linger, as prices remain 8.5p above the average charged in Northern Ireland.

May’s price drop brought diesel from 158.91p to 146.99p per litre, reducing the cost of a full 55-litre family car fill-up by £6.50.

Concurrently, petrol prices fell by 3p, from 146.35p to 143.26p per litre – a £1.70 saving per tank compared to the start of the month.

Despite the record diesel price drop, the RAC contends the reduction was both overdue and smaller than warranted, considering the wholesale price of diesel has been lower than petrol for 10 weeks.

This comes amid the Competition and Markets Authority’s (CMA) recent announcement that it would question supermarket bosses about their increasing fuel margins compared to four years ago.

RAC fuel spokesman, Simon Williams, commented: “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.”

Northern Ireland’s cheaper fuel prices reflect a more transparent and competitive fuel market, which drivers across the UK would welcome, particularly amid the current cost-of-living crisis.

Williams further highlighted, “We’re sure retailers in Northern Ireland are still making money – they’ve just done the right thing for their customers by moving prices down as wholesale costs have fallen.”

May’s record single-month diesel price reduction was largely led by the big four supermarkets, although their prices remain higher than the average across all forecourts in Northern Ireland.

As the CMA investigates the disparity in fuel prices, the RAC hopes the pump price reductions will continue as they should. With a call for greater transparency in the market, they suggest an average diesel price target of 137p, aligning with what drivers are paying in Northern Ireland – a price the UK as a whole hasn’t seen since September 2021.