(qlmbusinessnews.com Mon, 18th Dec, 2023) London, UK —
“Driving into Savings: UK Petrol Prices Hit Two-Year Low Amidst Wholesale Fuel Relief”
Petrol prices in the UK have reached their lowest point in over two years, providing welcome relief to motorists, according to the RAC. The average cost of a litre of unleaded petrol stands at around £1.43, a price last observed at UK forecourts in October 2021. The decline in wholesale fuel costs is cited as the primary reason behind the reduction in pump prices, with predictions suggesting that petrol rates could dip below £1.40 in the coming week.
This decrease follows a recent warning from the Competition and Markets Authority (CMA), which expressed concern that retail prices for petrol and diesel were not aligning with the downward trend in wholesale costs, indicating potential issues with competition in the fuel market.
The RAC, a vocal critic of fuel pricing practices by supermarkets and petrol retailers, applauded the drop to an average of £1.43, approximately 10p lower than the same period last year. Simon Williams, the fuel spokesman for the motoring group, sees this as positive news for drivers, especially as prices are anticipated to continue declining in the run-up to Christmas due to significantly lower wholesale prices.
While diesel prices remain higher, averaging around £1.50, they have seen a decrease from last year's levels of approximately £1.75 per litre. This reduction in fuel prices comes as a welcome development for drivers who have experienced the impact of escalating fuel costs in recent years.
The trajectory of fuel prices saw an upswing as demand increased post-lockdowns, exacerbated by geopolitical events such as the Russia-Ukraine conflict. Peak prices in July reached record levels, with petrol at £1.92p per litre and diesel at £1.99. Concerns arose when subsequent decreases in oil prices were not fully reflected in fuel costs for consumers.
While an investigation in July uncovered that Britons paid an additional 6p per litre for fuel at supermarkets due to weak competition, recent months have witnessed a resurgence in worries over rising fuel prices. Factors such as renewed increases in oil prices, driven by production restrictions imposed by major oil producers like Saudi Arabia and Russia, contributed to the four-month consecutive rise in petrol costs.
As of Friday, Brent crude was priced at around $77 a barrel. Simon Williams of the RAC expressed optimism that if wholesale prices are more fairly reflected at the pumps in the next week, the average petrol price could drop below 140p per litre.
Tips to Save on Petrol and Diesel:
Watch Your Speed: The RAC recommends maintaining speeds of 45-50mph for optimal fuel efficiency.
Turn Off Air Conditioning: Using a car's air conditioning system increases fuel consumption by up to 10%. Consider turning it off when not needed.
Check Tyre Pressure: Regularly check and maintain proper tyre pressure to avoid unnecessary petrol consumption.
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