Fuel prices are on the way back down again, as supermarkets have slashed the price of petrol and diesel. Asda, Sainsbury’s and Tesco all cut the cost of fuel by 2p a litre today, meaning more money left in motorists’ pockets. This move also comes just in time for families holidaying in the UK and driving to their destination.
Asda has claimed that people using their fuel stations will now pay no more than 126.7p per litre for petrol and 129.7 per litre for diesel – the lowest price since January 2011.
RAC spokesperson Simon Williams told the Press Association: “The combination of the strengthening pound and the fact that tensions in both Ukraine and Iraq have not caused supply issues means wholesale prices have begun to ease again.
Falling wholesale prices don't always lead to cheaper forecourt prices so it's good news for motorists that this reduction is being passed on so quickly at the pumps.
"The impact of the shale oil extraction in the US is also causing global oil prices to reduce due to more product becoming available in the market, which in turn reduces reliance on importing oil from the Middle East.
"But falling wholesale prices don't always lead to cheaper forecourt prices so it's good news for motorists that this reduction is being passed on so quickly at the pumps. Cheaper fuel is good for individual motorists, businesses and the economy."
These price cuts mean that the average price for a litre of petrol stands at 130.9p and diesel 135.3p, according to petrolprices.com. According to government figures, the average distance covered by drivers in England is also declining, down to 7,900 miles last year – the lowest level over the last 12 years.
However, RAC Foundation director Professor Stephen Glaister has pointed out that “official figures show overall traffic volume is on the rise again following the end of the recession.”
Picture: Fotolia – Duncan Noakes