Save, make, understand money

Household Bills

Petrol prices at lowest level in two years

Petrol prices at lowest level in two years
Emma Lunn
Written By:
Emma Lunn

The RAC has delivered some Christmas cheer to motorists with the news that pump prices are the lowest they have been since October 2021 due to falling wholesale prices.

A litre of unleaded now costs an average of 142.57p a litre, a price which was last seen at UK forecourts in October 2021. The RAC predicts the price of a litre of unleaded could fall below 140p in the next week.

The current price is about 10p a litre cheaper than in the run-up to last Christmas and about 14p less than two months ago. Diesel prices have not fallen.

Fuel prices spiked in October with petrol rising by about 13p a litre between June and mid-October to 156.1p. Diesel prices surged by about 18p to 162.4p a litre in the same period.

Good news for drivers

Simon Williams, RAC fuel spokesperson, said: “This is good news for drivers, especially as prices should continue to come down in the run-up to Christmas, due to the wholesale price being significantly lower.

“While the biggest retailers haven’t announced any headline-grabbing big cuts, prices are falling steadily every day, which is encouraging. We just have to hope this continues in the coming days.

“If wholesale prices are reflected more fairly at the pumps, we should see the average price of petrol drop below 140p in the next week. While diesel isn’t at a similar low point … it’s still down from last Christmas’s dizzying prices of around 175p a litre.”

Earlier this month, the RAC accused petrol retailers of overcharging drivers, saying forecourts were too slow to pass on falling wholesale costs to customers.

There have previously been warnings that a surge in fuel thefts could lead to petrol price increases, while reports have found that drivers are adapting their behaviour to cope with higher fuel costs.