Posts Tagged ‘petrol’
The RAC are predicting that the cost of petrol and diesel at the pumps is going to start nudging upward again. With wholesale prices on the rise again, last week’s fuel-for-under-a-quid aren’t looking like they’ll be coming back any time soon.
The RAC’s fuel guy, Simon Williams, told Sky: “Motorists have seen petrol and diesel prices reach their lowest points since 2009.”
“January saw the oil price go into free-fall with talk of a barrel dropping to $20 and possibly even to $10 dollars, but since the low of $26 a barrel the market has started to creep back up.”
“However, the oil market is notoriously volatile, even in more stable economic times, so it’s still possible that the price could drop back again.”
So don’t lose hope drivers! The fuel market is up-and-down more times than Charlie Brown’s mood, but any drop in price won’t be happening soon.
There’s been a price battle with the supermarkets at their petrol pumps, and Morrisons have announced that, as of 3pm today, they’ll be dropping theirs to below a quid.
They tweeted about it and everything, look:
Of course, there’s been a lot of chatter about this, as we previously reported.
Again, this is all down to a drop in the global price of oil and, naturally, the big established UK supermarkets want to court your affections, as everyone has been running off to Aldi, Lidl, and Waitrose.
Asda also said that they’re doing the same, dropping their fuel prices below a quid. Either way, if you need to fill up the car, get to a Morrisons today and go buck wild.
Motorists looking for a bit of good news this festive period – there’s some good news! You could be paying £1 for a litre for petrol! With oil prices falling to the lowest prices they’ve been in seven years, that means the retailers are all set to cut their prices in return.
The RAC reckon that this is going to see a drop of 3p for petrol and 5p for diesel. So, in actuality, that means prices would be around 103p for petrol, and 104p for diesel.
However, it looks like it’ll go lower than that. Yesterday, Asda said that they were “cutting the price of unleaded to 101.7ppl and diesel to 104.7ppl” from today.
As well as Asda, Tesco have cut petrol and diesel prices, and Sainsbury’s have said that they’ll be dropping prices by “up to 2p”.
The RAC’s Simon Williams said: “We expect Britain’s supermarkets and cheapest fuel retailers to be selling petrol at £1 a litre or less in time for Christmas. These retailers consistently tend to be 3p-5p a litre cheaper than the UK average price. We are still some way off the average price of unleaded reaching the £1-a-litre mark, but this will be a big step in the right direction.”
“If retailers don’t pass on the savings quickly, they will be giving themselves an unpopular Christmas boost to profits by pocketing the extra margin. They should really be passing this on to their customers instead. The long-term outlook is for the oil price to stay low.”
Of course, last month, Asda were selling petrol for 99.7p in a promotion around Black Friday, so if the supermarkets want people through their doors this Christmas, they could do worse than giving everyone savings on fuel.
We’re all under the assumption that supermarkets are sly and always up to something, so when one fella went to get some petrol from Morrisons, he decided to see what was going on with the nozzle.
Darryn Loose posted a video online, which shows him holding the pump without pressing the trigger, and clear as day, the amount to pay increased all by itself.
He was at the Morrisons in Chatham, Kent, with the cost increasing without any petrol coming out. You can bet that other people will be checking to see this happens across the country this week.
Loose said: “My worry is that how do I know that I actually got the £20 I put in in the first place?” He told the staff about it, showing them the video, but he was told they wouldn’t be checking the pumps.
He said: “I have been in arguing for a while. They weren’t even going to check the other pumps, they didn’t see the point! They have no idea. Said it was a one off incident, but they have no idea if it has been doing to everybody or not.”
A spokesperson for Morrisons said, once they’d seen the video, that they’ll be investigating the whole thing: ”An investigation showed there was a fault with the pump, and it has now been sorted out. We are making contact with the customer who filmed the video.”
Keep an eye on this, and make sure you’re not paying a massive company for thin air.
Bryan Burger, Morrisons petrol retail director said: “Prices have been hovering above the £1 mark for months now. We have seen oil prices also continuing to fall this week and that means that headline fuel prices could continue to fall.”
Full marks to anyone who tittered at the name ‘Bryan Burger’.
Anyway, Morrisons aren’t the only supermarket dropping their prices as wholesale costs fall. Asda cut 2p off the price of a litre last month, and it looks like that’s got another price war going.
Good news for drivers at the pumps, trying to nail a perfectly round number when filling their vehicles up, as this means that, over the coming weeks, a lot of forecourts should start dropping their prices.
Asda say this drop means “motorists won’t pay more than 103.7p per litre on unleaded and 106.7ppl at any of our 273 filling stations.”
They add: “Our latest fuel price drop puts the price of petrol at a new five-year low – that’s 5p per litre cheaper than the UK national average”
So, if you’ve got an Asda forecourt near you and your vehicle is currently running on fumes, hop to it and fill the tank up. As ever with fuel price drops like this, you can expect other supermarkets to follow suit and drop their prices as well, because they get really competitive over things like this.
Morrisons said that it was making their third petrol price cut in four weeks: “The falling wholesale price of unleaded is allowing us to pass savings on to motorists,” says the group’s services director, Jamie Winter.
The price of oil has more than halved since July 2014. Back then, it was over $100 per barrel, while this week, it is selling for somewhere in the region of $48 per barrel. Nice to see some savings being passed on, even if motorists have been over a barrel for years now (pun obviously intended).
Avishai Moor, Sainsbury’s head of fuel, said they were dropping the price of unleaded petrol by up to 2ppl across their 300 forecourts from today. Asda chipped in by saying its “new national price cap means that unlike other retailers who work on ‘average prices’ – drivers will pay no more than 105.7ppl on unleaded whilst diesel remains at a national price cap of 107.7ppl”.
So there you have it. Go and stock up. Fill the bath with petrol before they start whacking the prices up again.
British motorists are breaking down in bigger numbers than before, thanks to their vehicles running out of fuel, according to new research. Now, if we were writing a ‘How To’ guide, this would be a short article where we’d say: ‘Keep putting petrol in your car, you dimwit.‘
Around 827,000 drivers ran out of fuel in 2014 compared to the 777,000 the year before… but why?
Well, this study shows that 536,000 motorists frequently ignore their vehicle’s fuel warning light, as there’s clearly nothing more fun than running a car on fumes, to see how much you can squeeze out of it. 267,000 don’t ever notice that their warning light was even on.
24% of motorists reckoned that they could drive over 40 miles after the light had come on and 54% of drivers stated that they’d drive by a petrol station even though they needed a fill-up, in the hope of finding a cheaper petrol station somewhere else.
13% of drivers had broken down thanks to an empty tank, which according to some crude maths, makes for an estimated total of 4.9 million motorists.
John O’Roarke, managing director of LV= Road Rescue, who conducted the survey, said: “Having to buy expensive motorway fuel can be frustrating, but if it saves you the stress of running out of petrol and potentially causing damage to your engine then it’s worth the cost. Roadside assistance is there to help should a motorist find themselves in a sticky situation – but being diligent with topping up soon after the light comes on will help to avoid the headache that a breakdown can bring.”
Next week: we give advice on the reasons why you should always pull your trousers down before going for a poo
The fuel price war continues and Asda have announced that they’re lowering their prices again. Good news here is that it might force others to do the same. You know how needy and jumpy supermarkets are.
They say that motorists will now pay no more than £109.7ppl for unleaded, and diesel is staying at £106.7ppl.
And we quote: “Effective from today (21st August), Asda’s new national price cap means that unlike other retailers who work on ‘average prices’ our customers know they will pay no more than 109.7ppl on unleaded. Diesel remains at a market-leading national price cap of 106.7ppl.”
Not bad eh? You should fill up wheelbarrows with petrol or whatever, and stockpile it in the spare bedroom. What could possibly go wrong?
Anyway, fill ‘em up!
They noted that, over the last few weeks, the price of oil has fallen by nearly 5% – but guess what? Surprise, surprise – petrol prices are up by 1.2%. The AA said that drivers are now paying an extra 1.73p a litre of petrol, and an extra 0.63p a litre of diesel.
The fuel industry said that wholesale costs are up, which is why prices have risen at the pumps. The fact that oil is priced in dollars and the pound has fallen against it, isn’t helping either.
Edmund King, the AA’s president, isn’t having any of it and said that motorists are losing out. ”Cars are like blank cheques for whoever feels the need to balance the books by plundering drivers’ pockets,” he said. ”Now the fuel retailers are taking £3 a tank extra on diesel to steady their finances.”
This comes on the back of the RAC saying that fuel prices were ‘highway robbery’, which again, saw the sellers saying that everyone should leave them alone and that no-one understands them.
Not only are diesel drivers being ‘demonised’, but there’s a suspicion that they’re also subsidising all the unleaded drivers too, which is just not on.
The RAC is calling for a cut of 4p-per-litre at the pumps because something doesn’t add up regarding what motorists are paying and the wholesale costs. The group noticed that the wholesale price of diesel was 1p a litre more than petrol, however, diesel drivers paid nearly 6p more than petrol-havers at the forecourt.
So what’s going on there then?
RAC fuel spokesman Simon Williams said: “It’s hard not to think that business is being taken for a ride by the fuel retailers. Traditionally, business runs on diesel, and with sales of diesel at an all-time high the retailers have maintained a higher margin on diesel, perhaps to subsidise petrol sales”.
It appears that diesel drivers are being rinsed as the forecourts trying and recoup money as oil costs have lost (up to) 60% of their value. And while diesel prices hit a five year low in January, they’re not dropping as fast as unleaded. The latest figures show that the average diesel prices at the pumps is 118.31p per litre, while unleaded costs stand at 112p.
17 areas will be able to apply for the rebate from May 31st.
This is good news because, until now, prices have been higher because of the cost of extra transportation needed and the lower demand for fuel.
Chief Secretary to the Treasury, Danny Alexander said: “This is great news for motorists in these areas and brings a duty discount a step closer. Even though fuel prices are falling across the country, they are still higher in very rural areas. As someone who comes from one of the most rural areas in the UK, I know that for people who live in these areas cars are a necessity, not a luxury. I’ve fought hard to reach this major milestone.”
“While we have one more stage to go, I want to make sure we are ready to implement this as a top priority so we will press for this to be heard as soon as possible and are today publishing the necessary draft regulations. I’m determined to implement the rural fuel rebate in the current Parliament as part of this government’s drive for a stronger economy and fairer society.”
Roughly translated, what Danny Alexander just said was: ‘It might be an idea to get the farmers onside just before an election.’
There are some places in the Highlands, North Yorkshire, Devon, Northumberland and Argyll and Bute that are eligible and if you want to see the areas, click here.
According to forecasters, the Ernst & Young Item Club falling prices in shops and forecourts in the early part of this year, would be a “shot in the spending arm”.
The Item Club, whose predictions are based on the Treasury’s economic model, says the fall in oil price is acting as the catalyst.
Which arm is your spending arm? It’s a question we’ve asked for years.
Crude oil prices have halved since last summer and inflation in the UK has declined sharply as a result, hitting just 0.5% in December.
Item’s Peter Spencer reckons that it will all help in boosting economic growth, which he expects to be 2.9% in 2015. “Not every economy will be a winner from oil prices collapsing, but the UK certainly is,” he said.
With January always representing a struggle to make the pennies last until the end of the month, news that the falling oil prices could make a recognisable difference is bound to be welcome. Calculations by the RAC Foundation show that drivers could be at least £140 better off this year.
According to the RAC Foundation, based on an average price of £1.17 per litre of petrol and diesel, motorists spent an estimated £2.57bn on fuel last month. This is a £330m total saving compared with last summer when the average price of petrol was around £1.33 per litre. For the average motorist who drives around 8,700 miles a year, and assuming that the price of petrol and diesel remains near its current levels, that saving equates to about £140 per year. This has already been likened to an unexpected tax cut for drivers, although it remains to be seen whether the fuel duty escalator will remain frozen when the Chancellor presents his budget in March- after all, lower prices might not mean lower duty, but it will mean the Government’s tax take in VAT on petrol will be down too.
“The reduction in pump prices might be measured in pennies but the combined savings for drivers add up to billions of pounds,” said Prof Stephen Glaister, director of the RAC Foundation. “This is money that will be pumped back into the economy to relieved households rather than disappearing into the pockets of oil producers. Consumers will not just have more money to spend, that money will go further as the goods we buy fall in price as road haulage costs drop.”
Unlike domestic fuel prices, pump price savings have already started to filter through to drivers, with some reports of prices dropping below £1 per litre for the first time since May 2009. Combined with drops in other costs, like grocery shopping owing to price wars between the big supermarkets, 2015 could just be the year we start to feel a bit better off…
As previously rumoured, petrol prices are about to drop.
It looks like prices will fall below £1 a litre for the first time in yonks, thanks to a slump in the global price of oil and, perhaps more pertinent, the increasing competition between supermarkets as they all vie for our affections since we all started shopping at Aldi and Lidl.
Oh, and there’s the small matter of an election coming up, which means Tories winking at you and saying ‘hey guys! Remember all that cheap petrol you bought? Eh? Eh? All you hard working families! Please love us.’
The average cost of a litre of petrol was 131.6p in July, and back then, oil was going for $105 a barrel. With oil now trading at $57 a barrel, the savings are actually being passed on to drivers. Quite astonishing really. Tesco, Asda, Morrisons and Sainsbury’s have all said they’re dropping pump prices, with Asda charging 107.7p a litre for petrol.
Simon Williams, an RAC fuel spokesman, said: “What’s currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before.”
Before long, it’ll be under a quid for a litre of fuel, thanks to the election and the prediction that oil prices will fall to below $40 a barrel. Of course, drivers aren’t daft and everyone is expecting that price to rise before 2015 is out.