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Petrol Price Falls Best Since 2008

 

Motorists are enjoying the biggest fall in petrol prices since the credit crunch started in 2008.

But the AA has warned that a further dip in prices is unlikely.

Average petrol prices in the UK fell 5.49p a litre between mid  September and mid-October - the biggest monthly fall since the 11.5p petrol price collapse in November 2008, according to the AA.

Petrol is now averaging 132.16p a litre while diesel has dipped from 142.50p a litre to 139.12p.

The AA said the price falls have cut £2.74 off the cost of refueling a small petrol car and £3.84 off the bill for a Ford Mondeo-sized petrol vehicle.

Comparing average regional pump prices for mid-October, Northern Ireland is most expensive for petrol at 132.9p a litre - despite seeing the biggest fall over the past month. London, the north of England, and Yorkshire and Humberside are jointly the cheapest areas at 131.9p.

For the past month, the wholesale price of petrol has been largely at the same level it was during December. This has brought the current pump average back to where it started the year, at around 132p a litre.

But it went on: " 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.

" AA 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.

 

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