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Petrol price in biggest fall since the credit crunch

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
18/10/2013

The price of petrol has recorded its biggest fall since November 2008, according to motoring body the AA.

Average petrol price in the UK has fallen by 5.48 pence a litre since mid-September, making that the biggest monthly fall since the 11.5p-a-litre petrol price collapse in November 2008.

According to October’s AA Fuel Price Report, the cost of diesel is down almost 3.4p a litre.

In the past month, the average pump price of petrol has fallen from 137.64p a litre to 132.16p, while diesel has dropped from 142.50p a litre to 139.12.

The AA said lower wholesale fuel prices had prompted the price drop, but warned that further falls were unlikely.

It said that the price falls have cut £2.74 off the cost of refuelling a small petrol car and £3.84 off the bill for a Mondeo-sized petrol vehicle. A family with two petrol cars will see the monthly fuel bill fall by £10.00.

With the UK consuming typically 1.55 billion litres of petrol a month, the 5.48p average price reduction has diverted around £2.83m a day from the pump to the high street and other consumer spending, the report found.

The AA’s president Edmund King said: “A more than £2.50-a-tank cut in petrol costs for families is a dramatic improvement on its own. But, heading into winter with cars using more fuel, the timing couldn’t be better.

“Alongside Asda, Sainsbury’s decision to fully reflect the fall in wholesale prices has been a huge benefit for drivers and businesses. However, the AA is also encouraged by the growing band of non-supermarket retailers challenging the pricing of other supermarkets whose prices in many places are far less generous.

“The bigger picture, with the future of refineries in the British Isles under threat, is more worrying and the AA urges the Government to find ways to support them. Last year’s bitter experience of speculator-inflated pump prices, fuelled by refinery closures, should be warning enough – even before considering the loss of UK manufacturing jobs.”

Regionally, the South East has benefited most from the drop in petrol price, averaging almost a penny a litre better off than 10 months ago. Wales fares worst, on average 0.4p a litre more expensive than in December.

 

Petrol – comparison by brand (14/10/13)

BRAND Petrol
This month
Last month
Price change
Mid December
Dec-Oct compared
  (pence per litre) (ppl) (ppl) (ppl) (ppl)
Asda 128.70 133.70 -5.00 128.71 -0.01
BP 133.57 138.87 -5.30 133.60 -0.03
Esso 131.64 137.20 -5.56 131.92 -0.28
Jet 131.72 137.21 -5.49 132.10 -0.38
Morrisons 130.47 135.87 -5.40 129.83 0.64
Murco 132.05 137.63 -5.58 132.08 -0.03
Sainsbury 129.68 135.71 -6.03 130.02 -0.34
Shell 132.71 138.49 -5.78 132.56 0.15
Tesco 131.14 136.54 -5.40 131.94 -0.80
Texaco 133.10 138.46 -5.36 133.39 -0.29
Total 133.17 138.42 -5.25 132.45 0.72
UK Average 132.16 137.64 -5.48 132.32 -0.16
 source: AA

 

 

 


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