Tank of petrol to be £10 cheaper within two weeks, according to the AA

The cost of filling up a car is set to become cheaper, as the soaring cost of petrol and diesel is poised to finally come down.

According to the AA, the price of petrol has dropped by 2.8p a litre from record highs, making  the price of a tank of fuel £1.50 cheaper.

On June 1st, wholesale petrol peaked above £1 a litre, but officially fell below 80p a litre for much of last week. 

And in the coming weeks, the AA predicts that drivers will likely fork out £10 less per tank as prices continue to fall.

Erik Mclean / Unsplash

Luke Bosdet from the AA said, as per The Telegraph: “Wholesale petrol’s trajectory, if sustained, would lead to savings from the record highs, providing the fuel trade is prepared to pass them on. 

“So far this morning, even with oil rebounding, wholesale petrol remains below 80.5p a litre.”

Read More: Greater Manchester petrol station slashes prices to help with cost of living

He added: “The problem is that, in many places, the price cuts are quite simply not happening despite more than six weeks of falling costs.”

However, fuel looks to be the only thing coming down in price; last week, Money Saving Expert founder Martin Lewis gave a grim insight into the cost of energy bills in the coming months. 

Noting how the predictions made him ‘feel sick’, Lewis took to Twitter to outline how the price cap is expected to go up by 64% in October, hiking the average annual household bill to a massive £3,244.

The latest estimates from Cornwall Insight – one of the UK’s premier energy consultancies – defies the previous prediction made by Ofgem back in May, who predicted the October cap to rise around £2,800.

Lewis wrote: “I feel sick writing this! I’ve just got the latest price cap predictions from Cornwall Insight. A huge spike in the key year-ahead wholesale price means October cap prediction UP 64% (so £3,244/yr on typical bills). January cap prediction UP 4% (so £3,363/yr).”

He added: “It’s horrendous. Especially as we’re now near the end of the assessment period that sets Oct’s cap, so this is the right ball park. The Oct prediction is now £450/yr HIGHER than Ofgem mooted in May & that was what Sunak based the £400-£1,200/yr help on.”