Petrol prices in the UK have dropped to a three-year low, thanks to a decrease in oil prices and the strength of the pound. According to the RAC, the average price of a litre of petrol at forecourts across the country was 135.7p on Tuesday. This marks a significant drop from the record high of 191.5p per litre reached in the summer of 2022 following Russia’s invasion of Ukraine.
Simon Williams, the RAC’s fuel spokesperson, commented on the price fall, stating, “To see pump prices drop to this level is really positive news, both for households who depend on their vehicles for getting about, and for the wider economy as there’s a clear link between the cost of fuel and the headline rate of inflation.” He also mentioned that drivers could now pay as little as £1.26 for a litre of unleaded, reducing the cost of refuelling a typical family car to under £70.
The decrease in petrol prices can be attributed to a combination of factors, including a relatively low oil price due to lower global demand and a strong pound. Williams expressed optimism that pump prices could further decrease in the coming weeks to align with the lower wholesale costs that retailers are facing when purchasing fresh fuel stocks.
The decline in petrol prices has been welcomed by motorists and economists alike, offering relief to families and potentially aiding the economy. As the global situation continues to influence oil prices and currency exchange rates, it remains to be seen how petrol prices will fluctuate in the near future.