Petrol prices in the UK have plummeted to a three-year low, thanks to a combination of falling oil prices and the strength of the pound. As of Tuesday, the average price for a litre of petrol at forecourts across the country stood at 135.7p, according to the latest report from the RAC. This significant decrease comes after petrol prices hit an all-time high of 191.5p per litre in the summer of 2022, in the aftermath of Russia’s invasion of Ukraine the previous year.
In response to this latest development, fuel spokesperson Simon Williams from RAC expressed optimism, 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.” Williams highlighted that depending on where drivers refuel, they could pay as little as £1.26 per litre, reducing the cost of refuelling a standard family car to under £70.
The decrease in petrol prices can be attributed to a relatively low global oil price due to reduced demand worldwide, coupled with a robust pound. Williams noted that the current prices are now far from the peak seen in 2022 and suggested that there is room for further reduction in pump prices in the coming weeks to reflect the lower wholesale costs of fuel procurement for retailers.
The fall in petrol prices bodes well for consumers who rely on their vehicles for transportation and is expected to have a positive impact on the overall economy. With the cost of fuel being an important factor in the inflation rate, the recent price drop is a welcome relief for many households across the UK. Drivers are urged to take advantage of the current favourable prices while they last, as further reductions could be on the horizon.