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UK drivers enjoying biggest price cuts since 2008

British motorists are currently benefiting from the deepest cut in fuel prices since the current economic downturn began in 2008. From mid September to mid October this year, petrol prices fell by an average of 5.49p per litre. The average price of petrol is now 132.16p per litre, with diesel dropping from 142.5p to 139.12p per litre during the same period.

British motorists are currently benefiting from the deepest cut in fuel prices since the current economic downturn began in 2008. From mid September to mid October this year, petrol prices fell by an average of 5.49p per litre. The average price of petrol is now 132.16p per litre, with diesel dropping from 142.5p to 139.12p per litre during the same period. These drops represent the biggest price cuts since a collapse in the market in November 2008 resulted in an 11.5p fall in the price of petrol. Motoring organisation, the AA, has said, however, that further price cuts are unlikely.

The AA says that the price cuts mean that it now costs £2.74 less to fill up a small petrol motor, or £3.84 to fill a Mondeo sized car. The price cuts may also be good for the wider UK economy coming up to the key Christmas shopping period. As we use 1.55 billion litres of fuel per month, it means shoppers will have around £75 million per month extra to spend on the High Street.

Around the country, regions show distinct variations. Northern Ireland has seen the biggest falls but is still the most expensive for petrol, at 132.9p per litre. London, north England, Yorkshire and Humberside are cheapest at 131.9p. Scotland has seen a price drop of 3.3p per litre for diesel but is still the most expensive at 140.1p. London again comes in cheapest at 138.6p. The wholesale price of fuel has returned during the last month to where it was in December 2012. This is the major factor behind the drop in prices to around 132p per litre.

Commenting on the prospects of further cuts, an AA spokesman said: "The prospect of a further drop in pump prices is doubtful, with the pound losing some of its value against the dollar and a US budget agreement likely to strengthen the American currency. The averted industrial action at the Grangemouth refinery reduces the threat of higher oil and wholesale fuel costs in Northwest Europe. However, the future of UK refineries is back under the spotlight."

Edmund King, president of the AA added: "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 business

 

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