Despite concerns over the rising cost of living, there’s one area of the economy that’s offering consumers greater value than ever before. The cost of petrol and diesel is at its lowest level in two and a half years, according to new data from an AA report.
UK motorists are paying less for petrol than at any point since mid-2011, a new AA study shows. Petrol prices have fallen from a recent peak of 138.38p in September to just 130.44p per litre due to a stronger currency and improved trade.
Diesel prices have also decreased in recent months. The cost of diesel was 139.12p per litre in mid-October and is now just 137.78p per litre, according to the new AA report on fuel prices. AA sourced the data used in its report from research agency Experian Catalist.
The data uses the average fuel prices from a variety of outlets around the country. In certain areas, fuel prices fall significantly below the average. The AA purchased fuel from a variety of supermarket petrol outlets at just 126.7p per litre in areas with an extensive range of outlets.
AA president Edmund King commented on the findings, noting that consumers and motorists “cannot understate the importance of lower pump prices.” Analysts have pointed to the delay of new fuel taxes as possible reasons for the decline in pricing, which has increased the affordability of travel for millions of motorists.
Despite the decrease in pricing, motorists note that many areas are affected by fuel prices that are far above the average. Motorists have reported seeing prices decline by as much as five per cent simply by driving from one town to the next.
Economists are also concerned that prices could rise across the board as demand for fuel increases and currency fluctuations affect oil prices for UK companies. Head of external affairs at the RAC motoring organisation, Pete Williams, notes that “petrol and diesel prices may have gone as low as they can for the time being.”
