Group 28

2022-09-24 03:16:00 By : Ms. Beulah Bai

The cost of filling an average car is £14 less

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The cost of petrol has dropped below £1.60 a litre on many forecourts across Devon as the price continues to fall from a high point in July. But motoring organisation the RAC says the big four supermarkets are refusing to pass on all the benefits of a steep decline in wholesale prices.

The lowest reported by PetrolPrices.com on Thursday was 154.9 pence per litre at the Harvest service station in Kingskerswell, near Newton Abbot, and in Barnstaple at the Texaco garage on Pilton Causeway and the Esso on Barbican Road.

Figures published by the Department for Business, Energy and Industrial Strategy showed that across the UK a litre of petrol cost an average of 165.5p on Monday, while diesel was 181.1p per litre.

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They are the lowest prices since May 16, coinciding with a fall in wholesale costs due to a drop in oil prices. The highest average fuel prices for the year so far were recorded on July 4, when petrol was 191.6p per litre and diesel was 199.2p per litre. That was an all-time record high. Since then, the cost of filling up a typical 55-litre family petrol car has been cut by more than £14, while refuelling diesel models costs nearly £10 less.

Prices soared during the spring and summer as a result of the increased cost of crude oil following increased demand from the global economic recovery after the pandemic, and uncertainty over the Russian invasion of Ukraine. There was further upward pressure on UK prices due to the pound weakening against the dollar.

AA fuel price spokesman Luke Bosdet said: “Although the fall in pump prices has slowed in recent weeks, they continue to trickle down steadily. This was to be expected as the end of the US summer motoring season eases the pressure on gasoline demand and therefore reduces the wholesale price of petrol in this country. At UK street level, petrol prices around 155p a litre are beginning to appear again.”

RAC fuel spokesman Simon Williams said: “While this is clearly good news, prices should have fallen much further than they have due to the big reduction in the cost of wholesale fuel this summer. The main reason this hasn’t happened is that the big four supermarkets, which dominate UK fuel sales, have refused to pass on savings. Average margins are now 19p a litre – 12p more than the long-term average. Petrol should really be on sale for 153p a litre and diesel 175p. We hope the Competition and Markets Authority is watching what’s happening closely.”

A study this summer found the refiners had increased the gap between the cost of crude oil and the wholesale price of fuel from 10p to nearly 35p per litre, adding to the pump prices. That added around 24p to the cost of a litre, more than cancelling out a 5p per litre cut in fuel duty by the Government. Retailers maintained their margin of around 10p per litre.

Despite the fall in prices, a new survey indicates that 50% of UK drivers are cutting back their car usage to save money. The poll of 2,807 people commissioned by automotive classified advertising business Auto Trader suggested that motorists in north-east England are most likely to be reducing their mileage, at 56%.

Some 68% of respondents from across the UK said they plan to sacrifice eating out in favour of filling up their vehicle, according to the Press Association.

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