British motorists across the country have been given a huge boost as it has been revealed that prices for petrol have carried on dropping this month, reaching their lowest levels in almost three years.
AA’s most recent Fuel Price Report has indicated that the average cost of unleaded fuel has dropped from 132.16p per litre to 130.44p in the past month whilst the average of diesel has also decreased from 139.12p to 137.78p in the same time.
The issue of petrol prices was highlighted frequently at the start of this autumn, with costs being as large as 139p per little of unleaded at certain points in September. It had been feared that the costs would continue to rise and add an extra financial burden on the purse strings of already struggling consumers, but recent global activity has led to prices plunging in the past few weeks.
The key factors have been the resolution of the Syrian crisis and the resurgence in the value of the pound, which has significantly decreased wholesale prices across the UK.
However, the findings of the report have been played down by the AA, who has cited that the costs of petrol range immensely from area to area across the UK. Intriguingly, the cost of petrol in the North West of England is actually more expensive than it is in London, with the average price of unleaded petrol being 130.5p a litre this month compared to 130.2p in the capital.
The AA have called for all petrol stations to keep their prices lower when running costs decrease for them as it would ensure a fairer market for all.
AA President, Edmund King, identified: ‘But in the many towns where our members and other drivers complain about pump prices being 5p a litre higher than a few miles up the road, extra relief for the retailers should be reciprocated with fairer pump prices”.
‘Long term Boost’
Though a decrease of around 2p a litre doesn’t appear that great, the long term savings enjoyed due to the price drop are incredibly high.
Earlier on this autumn, the AA estimated that the average driver used around £30 a week on their petrol and cited that this would have granted those around 21.5 litres at the time. With the prices currently being displayed, the AA has now adjusted this figure to 23 litres for every £30 spent which equates to being granted over 500 free miles each year.
Mr King said: ‘A family with two petrol cars was spending the equivalent of £252.54 a month on fuel in September, now it’s £238.05.
‘A company with 100 Ford Mondeos was spending typically £10,000 to fill them up with diesel in mid-September, now it’s around £9,640. Last week, it was officially recognised that lower pump prices helped to bring inflation down to 2.2 per cent.
‘You cannot understate the importance of lower pump prices. That is why, when the independent retailers say they would get significant savings from delaying the payment of fuel tax, the AA wholeheartedly supports the move if it helps the remote rural and other small petrol stations to survive.’
Mr King also identified that families were set to save almost £20 a month from the small price decrease, representing a £200+ saving across the year.