The plummeting cost of wholesale fuel could see prices at the pump coming down too but only if fuel bosses pass those savings on to the customer.

After reaching record highs on July 1 when the average price of unleaded stood at 191.4p and diesel at 199.1p, the cost has since fallen to £188.76 and 196.96 respectively.

However, this could come down even further with motorists saving £10 for a tank of unleaded within the next two weeks, according to the AA.

Glasgow Times: The rising cost of petrol since the beginning of 2022. Picture: PAThe rising cost of petrol since the beginning of 2022. Picture: PA

AA fuel price spokesperson, Luke Bodset, told the Metro: “Wholesale petrol’s trajectory, if sustained, would lead to savings of a tenner off a tank from the record highs, providing the fuel trade is prepared to pass them on.

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

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Rising fuel costs

A review by the Competition and Markets Authority (CMA) earlier this month found the increase from the crude oil price when it enters refineries to the wholesale price when it leaves them as petrol or diesel has more than tripled in the last year, from 10p per litre to nearly 35p per litre.

It said that retailers’ margins “remained about 10p per litre on average” over the same period.

The regulator has launched a market study that will examine the sector “in more depth”.

CMA general counsel Sarah Cardell said: “The recent rises in pump prices are a major worry for millions of drivers.

“While there is no escaping the global pressures pushing up fuel prices, the growing gap between the oil price and the wholesale price of petrol and diesel is a cause for concern.

“We now need to get to the bottom of whether there are legitimate reasons for this and, if not, what action can be taken to address it.

“On the whole the retail market does seem to be competitive, but there are some areas that warrant further investigation.”

A spokesperson for UKPIA, a trade association representing the fuel sector, including refineries, said the review was “undertaken at speed” and pledged to continue to “work constructively” with the CMA and the Government “to fully understand the issues which have been identified”.

Glasgow Times: The RAC and AA both welcome the CMA's examination of the cost of fuel at the pump. Picture: PAThe RAC and AA both welcome the CMA's examination of the cost of fuel at the pump. Picture: PA

RAC fuel spokesperson, Simon Williams, said: “We are particularly pleased to see that the CMA acknowledges the gap between wholesale and retail prices has been widening in recent weeks.

“Regardless of the reasons for wholesale prices being what they are, we continue to believe there is clear evidence, not least in the last week, that major retailers are incredibly slow to pass on falling wholesale costs, yet quick to pass on rising ones.”

Jack Cousens, the AA’s head of roads policy, said pump price competition is “broken” as supermarket fuel retailers are no longer sparking widespread price cuts by being the first retailers to pass on wholesale cost reductions.

“The AA therefore welcomes the CMA’s suggestion of more pump price transparency immediately,” he said.