The price of unleaded could fall by 2p over the coming weeks, with possible diesel cuts to follow.

Fuel price cuts could be on the cards, says the RAC

So says the RAC, which is urging retailers to cut the forecourt price of petrol to reflect the falling price of unleaded fuel on the wholesale market.

Although there were fears that petrol prices could shoot up as a result of the EU referendum, a fall in the oil price has had the effect of pushing down wholesale fuel prices, and to a large extent has cancelled out the impact of the declining value of sterling, RAC Fuel Watch data shows.

A barrel of Brent crude oil ended both Monday and last Friday under $45 – the first time it has dropped to this point since early May – driven by relatively weak global demand and new fears of oil oversupply.

However, the RAC data shows that the fall in wholesale fuel prices is not being passed on.

Since the EU referendum results was announced on 24 June, the wholesale price of unleaded including VAT has fallen 2.84p to 104.65p, yet the average price on forecourts has risen by 0.54p to 112.29p. The diesel price meanwhile has remained largely static, falling just 0.26p on wholesale markets to 106.42p, and rising 0.73p to 112.72p at the pumps.

RAC spokesman Pete Williams said: “At a time when both consumer spending and the strength of the UK’s economy are under intense scrutiny in the wake of the EU referendum result, transparency in fuel pricing is crucial and we are therefore calling on retailers to do the right thing and pass on wholesale savings to drivers.”

A cut of 2p in the price of unleaded petrol would take the average price of a litre down to around 110p, or less than 108p per litre at the cheapest forecourts.

Williams added: “We are also continuing to monitor the price of diesel closely to see if there is scope for a price cut in the weeks ahead.”