Fuel prices in the UK are dropping at a rapid pace, reaching their lowest point in nearly three years. Both petrol and diesel prices have decreased significantly across forecourts, with petrol falling from 142.9p to 136.2p per litre, and diesel dropping from 147.7p to 140.9p. This means that filling up a typical 55-litre family car is nearly £4 cheaper compared to a month ago.
The decrease in fuel costs has been attributed to a combination of lower global demand for oil and a drop in oil prices to 73 US dollars per barrel. Additionally, the strength of the pound against the US dollar has provided UK fuel retailers with better value on the wholesale market. The RAC, a motoring services company, anticipates that average pump prices could reach a three-year low by the end of September. They project that petrol prices could drop to 132p per litre, and diesel prices to 138p per litre within the next two weeks.
RAC fuel spokesman Simon Williams expressed optimism about the rapid decline in fuel prices, highlighting the positive impact on drivers’ expenses and overall inflation levels. Williams emphasised the importance of driving efficiently to maximise fuel economy. He also noted that based on wholesale pump prices, there is potential for further reductions in fuel costs, which could lead to the lowest prices seen in three years.
Commenting on the current trend, Williams stated, “It’s really encouraging to see pump prices coming down so rapidly, which we know is as good for drivers’ wallets as it is for keeping the headline level of inflation in check.” The unpredictability of global oil prices and exchange rates remains a factor that is beyond drivers’ control. However, Williams underscored the significance of making every pound spent on fuel count in households’ monthly expenses.
In light of the ongoing decrease in fuel prices, many drivers are likely to benefit from reduced costs at the pump in the coming weeks. The expectation of reaching a three-year low in average pump prices provides a glimmer of relief for consumers amidst economic uncertainties. The downward trend in fuel prices reflects a positive development for motorists across the UK, potentially offering some respite in challenging financial times.