Fuel prices fall to two-and-a-half-year low

November 22, 2013 | By | In News

The average cost of fuel has fallen to its lowest level since 2011, according to new figures released by the AA last night.

It said that the average cost of petrol has now fallen to 130.4p per litre, while the average cost of diesel is now down to 137.8p per litre.

Those figures compare with average highs earlier this year of 138.8p per litre for unleaded, and 142.3p per litre for diesel.

The reductions have been attributed to the strong Pound, as well as an easing of concerns over the effect of the Syria crisis on supply.

“Last week, it was officially recognised that lower pump prices helped to bring inflation down to 2.2%. You cannot understate the importance of lower pump prices,” says Edmund King, president of the AA.

“A family with two petrol cars was spending the equivalent of £252.54 a month on fuel in September, now it's £238.05.

“On average, 28% of AA members buy a set amount of fuel each time they go to a petrol station. This rises to 40 per cent for a younger drivers and 44% for low-income ones.

“In September a £30 spend bought them 21.7 litres and now it buys them 23 – a boost equal to a free 10-mile round trip to work.”

However, the AA warned that wholesale oil prices are once again on the rise, partly because of the US’s fiscal stimulus programme, but also because of tension in Libya.

The organisation also added that there was a significant difference in price between fuel stations in urban areas and those in more rural locations, with the latter suffering from a lack of competition.

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