Drivers expecting a noticeable fall in their petrol bills following the recent collapse of the price of oil will be disappointed, experts have said.
The AA said NHS and other essential workers commuting by car were overpaying by more than £5 per tank as petrol prices have not fallen alongside the price of oil.
The American oil benchmark, West Texas Intermediate (WTI), fell into negative territory on Monday for the first time ever, closing at minus $37.63 per barrel. The more popular Brent crude oil, which is used in the UK, has not fallen as dramatically but is trading at an historically cheap $21 per barrel.
The fall in commodity prices is unlikely to be passed on to consumers, as only about 11p in every pound of petrol is based on the price of oil. More than two thirds of the price at the pump is fuel duty and VAT.
The cost of petrol has fallen from 126p per litre at the start of the year to around 110p, the lowest since 2016. Only 12p of the current price is based on the oil price, according to the RAC Foundation, a motoring body.
The AA calculated that the price of fuel should be around £1 a litre but that petrol stations were overcharging by 10p per litre to offset a drop in sales.
With most people in the country on lockdown and car journeys during the week at around 40pc of usual levels, those unable to work from home – such as frontline NHS staff – could be paying £5 extra per tank.
Howard Cox of FairFuel UK, a watchdog, said fuel prices were heavily reliant on what price is charged by the supermarkets, as they were the largest suppliers.
“If they cut their prices, independent petrol stations will do the same,” he said.
Coronavirus has dampened demand for oil, with planes no longer in the air, cars not driven and manufacturing stopped, yet suppliers have continued to pump out the commodity, causing an oversupply in the market.