You are here: Home - Household Bills - News -

Relief for drivers as petrol prices could soon fall

0
Written by:
24/09/2018
After weeks of sky-high prices, the cost of petrol could be about to fall.

Wholesale petrol costs have slumped by 3p a litre this month, which should trigger a supermarket pump price battle, according to the AA.

Over the past month, the average price of petrol has risen 1.8p a litre (up from 129.54p) while diesel has gone up a full two pence a litre (up from 132.33p).

Supermarkets are now averaging 128.1p a litre for petrol while oil company and other retailers average 132.7p.

With crude oil climbing towards $80 a barrel, drivers have been led to fear the worst. But, a combination of falling refining margins and a stronger pound should force a correction in pump prices – providing retailers choose to pass on the savings.

“Drivers were told earlier this month that there was ‘no end in sight’ to rising pump prices. Now, they should be looking for a £1.50-a-tank cut in petrol costs,” said Luke Bosdet, the AA’s fuel price spokesperson.

“The key question is to what extent and how quickly the fuel retailers decide to pass on the savings. In the past, such a significant drop in wholesale prices would have triggered a pump price battle among the supermarkets. For the moment, drivers should keep an eye out for competitive oil company sites taking the opportunity to undercut expensive supermarket sites.”

Earlier this month, Chancellor Philip Hammond hinted he would scrap the eight-year freeze on fuel duty in this autumn’s Budget, which had “saved the average car driver £850 and the average van driver over £2,100”.

How to cut the cost of petrol:

  • Do your research. PetrolPrices.com lets you search for the cheapest fuel prices in your area.
  • Head to supermarkets for the best deals.  “The age old myth of supermarket fuel being lower quality is not true, they all have to hit a very high standard to be sold in the UK so it will not damage the car, and they are often a few pence per litre cheaper,” says a spokesperson from PetrolPrices.com.
  • Avoid motorway service stations as they can charge up to 15p per litre more.
  • Try not to accelerate or brake sharply as this consumes more fuel.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
House sales up 1.3% in August

The total number of residential property transactions between July and August increased by 1.3% to 101,800 on a seasonally adjusted...

Close