UK Motorists are breathing a sigh of relief as petrol and diesel prices come down. On Monday (September 19), they were the lowest they have been since May 16.
A litre of petrol cost an average of 165.5p on Monday, while diesel was 181.1p per litre. The figures were published by the Department for Business, Energy and Industrial Strategy.
The highest prices for the year were recorded on July 4, when petrol was 191.6p per litre on average and diesel 199.2p per litre. Since then, the cost of filling up a typical family petrol car has been cut by more than £14, with diesel models costing nearly £10 less to fill.
AA fuel price spokesman Luke Bosdet said: “Although the fall in pump prices has slowed in recent weeks, they continue to trickle down steadily. This was to be expected as the end of the US summer motoring season eases the pressure on gasoline demand and therefore reduces the wholesale price of petrol in this country. At UK street level, petrol prices around 155p a litre are beginning to appear again.”
RAC fuel spokesman Simon Williams said: “While this is clearly good news, prices should have fallen much further than they have due to the big reduction in the cost of wholesale fuel this summer. The main reason this hasn’t happened is that the big four supermarkets, which dominate UK fuel sales, have refused to pass on savings.
“Average margins are now 19p a litre – 12p more than the long-term average. Petrol should really be on sale for 153p a litre and diesel 175p. We hope the Competition and Markets Authority is watching what’s happening closely.”
Why are fuel prices coming down?
As well as falling demand in the US as the summer ends, petrol prices are closely related to the wholesale cost of oil. Typically, every $2 increase in the oil price results in a 1p rise in petrol prices. The oil price has been falling because of a bleak outlook for the global economy.
How can I use less fuel?
The RAC has the following tips for saving fuel:
- Regularly service your car
- Keep in the highest possible gear for your vehicle while keeping within the speed limit
- Remove the roof box when not using and take out any heavy objects from the boot.
