Downstream UK oil industry drops pump prices

Pump prices for both diesel and unleaded petrol fell this week as the UK's downstream oil industry lowered the cost to consumers.

Figures from the Department of Energy and Climate Change (DECC) show that, as of July 26th, diesel prices were down by 0.21p per litre compared with the previous week.

However, the greater fall was seen in the cost of unleaded petrol, which dropped by 0.23p per litre or a little over £1 per gallon at the pump.

The short-term trend does not tally with the full-year picture, however, as downstream operators in the UK oil industry have faced increases in fuel duty.

On April 1st, duty rose by 1p per litre to 57.19p, prompting hikes in pump prices that have taken weeks to return to a pricing level similar to that before the duty rise.

Year-on-year, this has contributed to an overall increase in diesel costs of 16.1p per litre and of 14.4p on unleaded fuel.

The next DECC update is due on Tuesday, August 3rd at 09:30 BST.