Posts Tagged ‘petrol’
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.
Asda and Sainsbury’s are cutting their petrol by 2p a litre and diesel by 1p a litre, tomorrow. That’s nice isn’t it?
The RAC reckon that, thanks to world oil prices, petrol could be below £1 a litre in the new year, which would be the lowest pump prices since 2009.
RAC fuel spokesman Simon Williams said: “What’s currently happening at the pumps with falling fuel prices is something many motorists will not remember seeing before. Talk of prices going up like a rocket and falling like a feather could not be further from the truth as retailers have been quick to pass on savings at the forecourt since we forecast on December 6 that prices were due to come down by 7p a litre for petrol and 6p for diesel.”
Did it take you a couple of attempts to see what the crap he was talking about then? Anyway, it isn’t all happy-happy-joy-joy.
AA president Edmund King is being altogether more cautious: “With duty on each litre of fuel at 57.95p and VAT around 20p, plus the pound at its lowest level against the dollar for three months, it would take another almighty drop in crude prices to reach £1 a litre at the pumps.”
“Drivers would love to see £1 per litre but a white Christmas might be a better bet at the moment. However, for canny drivers there are still variations in pump prices of up to 5p litre in the same town. So shop around and make the most of the lower prices.”
They said that they’ve looked into the whole practice and researched it all, and their findings show that petrol and diesel costs are sometimes over 15p-per-litre more expensive than normal stations, which is unacceptable for drivers who are being had over a barrel (of oil).
RAC’s survey showed that motorist felt they were being “held to ransom” and one-in-four said that they refused to buy fuel at services. Two-thirds who took part in the survey said that they wanted a price cap and that the industry or Government needed to take action. Holding your breath is not advisable if you are waiting for the industry or parliament to sort this out.
The results of the investigation show that there’s “real concern” about drivers risking running on empty fuel tanks rather than filling up at motorway services.
The RAC’s fuel spokesman Simon Williams said: “It’s no wonder that motorists feel held to ransom with prices on the motorways inflated to such an extent. In some cases motorway petrol and diesel might even be 15p dearer than the cheapest forecourts, which would add as much as £8 to the price of a tank of an average family-sized vehicle.”
“We can see no reason why motorway fuel should be so much more expensive. In fact, arguably it is much easier from a delivery point of view than it is getting fuel to urban filling stations. We’re calling for motorway fuel retailers to be more reasonable with their pricing.”
Sainsbury’s and Asda will cut the price of diesel by up to 2p a litre and unleaded petrol by a penny from today.
Meanwhile, over at Tesco, they will cut unleaded petrol by 1p per litre, with diesel reducing by at least 1p a litre although some sites will get a 2p a litre price cut.
This all comes about after the price of Brent crude oil fell, which means the supermarkets can pass on some savings to you car-havers. They’ll also be hoping you buy your shopping from them too, rather than buggering off to Lidl and Aldi.
Asda’s petrol trading director Andy Peake, who is an incredibly dynamic, rollercoaster of a man, said: “We’re giving drivers the opportunity to fill up their cars with some of the cheapest fuel prices in the market for years.”
“No matter where customers live they will benefit from the same fuel price with our national price cap.”
Asda kicked it off when they bugled that they’d be cutting their prices today (Tuesday), capping petrol at 124.7p a litre and diesel at 128.7p, which is the lowest the chain have had since January 2011.
Then Sainsburys and Tesco both chipped in by saying they’d be reducing their prices on petrol and diesel too, although neither chain has a national price cap.
Supermarkets being supermarkets, they’ve always had the chance to offer cheaper deals for the driver, especially when tied up in points and rewards and brand loyalty type stuff.
However this move has been seen as a response to the otherwise slightly dearer independents, according to Paul Watters, AA’s head of public affairs
“We have seen competitive independent retailers east of London selling petrol as low as 125.9p a litre recently, which heralded a more general move by Asda,” he said. “With its national pricing policy, that lower pricing will be spread to drivers across the UK and will spur other retailers to follow.”
“However, depressed demand is also a major influence as families in the UK, Europe and the US continue to struggle with family finances. Although pump price movements have been relatively benign this year, the trauma of price spikes from 2011 into 2013 continues to haunt drivers.”
According to the AA, the average price across the UK yesterday was 129.71p a litre, and diesel was 133.74p.
The other supermarkets are set to follow, because that’s what they do.
Sales of petrol fell to a record low in March, as drivers abandoned their cars to do other things, like pay energy bills, feed their children and buy scratch cards in the vain hope that they’ll win £2.
Government figures showed that 1.367 billion litres of petrol were bought in March – a fall in demand of 24.7%. The only similar low figure in recent years was 1.376 bn litres last March. Back then, though, you could see the reason – March 2013 was freezing cold with petrol prices at a sky high £1.40 a litre. But this year was warm, with prices at a steady £1.30 a litre.
So what’s causing us to ditch the car? Well, AA boss Edmund King blames our boilers. He said (well, to be honest, he waffled):
‘Either the fear or reality of gas and electricity price surges has triggered an avoid-the-petrol-pump backlash to balance family spending, or the trauma of speculator-driven road fuel price spikes over more than three years has seared into the psyche of the UK driving consumer.’
We may find out in the next couple of months as the boilers and heaters are turned off – and drivers look forward to summer motoring and trips out.’
Ah, yes, summer motoring….with the hood down and a flagon of ginger beer in the picnic hamper.
Marvellous. (Oh, wait, we can’t do that, because the bailiffs repossessed the car. Oops.)
As you may have seen in our Deals Of The Day yesterday, Asda have dropped the price of fuel for motorists and Tesco have followed suit, with both supermarkets reducing pump prices of petrol and diesel by up to 2p a litre. Asda have said that drivers will pay no more than 126.7p a litre for petrol and 133.7p a litre for diesel.
Pete Williams, head of external affairs at the RAC, said: “The supermarkets are helping to brighten up January by knocking 2p a litre off petrol and diesel in reaction to falling wholesale prices.”
The good thing is, is when supermarkets start lowering their prices, everyone else does in response, which means a price drop across the country for everyone. Thanks to prices having gone up rapidly in recent years, these reductions still don’t stop fuel costs sticking in the craw, but at least there’s a small solace in the fact that, if prices fall to within 2p of the supermarker’s, we’ll have the cheapest fuel since February 2011. Depends whether you’re a half full/half empty person.
AA president Edmund King said: “Fuel price reductions at the pumps will bring a sigh of relief to many drivers who are struggling to make ends meet after bigger than normal financial outgoings during the festive period.”
“We hope that other supermarkets and fuel retailers follow the lead of Asda and Tesco to cut their prices at the pumps, otherwise we just end up with a fuel-price lottery based on proximity to certain supermarkets.”
In Britain, it’s more expensive to run a car than anywhere else in the world. Yes, your little Honda Jazz costs more to run than Justin Beiber’s pimp mobile, or Bret Michaels’ souped up RV full of dirty ladies.
On average we pay £3453 a year to stay on the road, which is a grand more than the Americans and the French, and £2000 less than the Chinese, who are scooting about on the cheap and living it up.
Webuyanycar.com took motoring costs from 21 countries and found that we shell out 27p a mile on average – paying more for fuel, tax and insurance. And of course, the thing we’re spending the most on is petrol. A whopping £2256 a year goes on filling the damn thing up.
Only Denmark and Switzerland came close to our prohibitive car costs. But the cheapest place to run a car is Saudi Arabia, where it costs the princely sum of £237.32 a year to own a car. But of course, they do have all the oil. And women aren’t allowed to drive, so that cuts costs for the oppressed ladies straight away.
Do you want a depressing table of costs? Thought so. Happy motoring!
1. UK £3,453.66
2. Netherlands £3,370.42
3. Switzerland £3,321.80
4. Italy £2,966.69
5. Portugal £2,914.63
6. Germany £2,856.04
7. France £2,538.82
8. USA £2,425.36
9. Spain £2,421.87
10. New Zealand £2,387.20
11. Australia £2,128.24
12. Canada £1,828.65
13. India £1,805.94
14. Russia £1,727.82
15. Japan £1,628.38
16. China £1,315.12
17. South Africa £1,280.18
18. UAE 672.01
19. Qatar £527
20. Argentina £269.92
21. Saudi Arabia £237.22
You might be feeling a little down today. After all, inflation is up, wages aren’t, and energy bills are going through the roof yet again. But it’s OK, petrol prices are going down so we’ll all be OK in the end.
It’s true. New figures from the AA say that the fall in petrol prices between mid-September and mid-October was a whopping 5.49p a litre on average, the biggest monthly fall since an 11.5p fall in November 2008. Diesel has fallen 3.38p.
The AA said the price drop has come about as a result of lower wholesale fuel prices, although further falls were unlikely, and they calculated that the cost of filling up the tank of a small petrol car has fallen by £2.74, and the tank of a Ford Mondeo, would cost £3.84 less to refill. What will we all do with all the extra cash.
The cost of petrol varies around the country too, with the most expensive place for petrol being Northern Ireland at an average of 132.9p a litre, with London, the north of England, and Yorkshire and Humberside tying for the cheapest price at 131.9p. Scotland is the most expensive for diesel at 140.1p a litre, while you can get it for just 138.6p in London.
The AA also reports that fuel prices place the UK as seventh most expensive for petrol within Europe, and second most expensive for diesel. They didn’t bother comparing with the US where fuel costs about 1p a gallon.
The AA’s president, Edmund King, said “a more than £2.50-a-tank cut in petrol costs for families is a dramatic improvement.” We think he needs to get out more. Still, as a certain supermarket likes to say, just before dumping tonnes of food, every little helps.
Remember the good old days when there were riots over petrol passing the £1 a litre mark…
The average price of petrol in the UK has risen from 133.35p a litre to 134.61p, while diesel has gone up from 138.17p a litre to 139.16p. Over in Northern Ireland, petrol is the most expensive with London having the cheapest.
The same goes for diesel, with Northern Irish paying 139.8p a litre and London and the south west paying out 139.1p.
The AA warned that this year, retailers have on average been “creaming up to £1 a tank extra off diesel car drivers and up to £1.40 a tank extra off diesel van owners”, adding; “at present, the 1p-a-litre premium that fuel stations are generally adding to the cost of diesel adds 5,500 miles to the break-even point for a new car buyer who chooses diesel instead of petrol.”
“Diesel cars typically cost £1,500 more but the saving from better fuel efficiency should eventually recoup that.”
AA president Edmund King said: “To be fair, there is often much greater variation in the price of diesel among retailers in a town than with petrol. However, on average, the profit margin on diesel is consistently at least a penny higher than with petrol.”
“The clear message to diesel drivers is to take advantage of the greater range of prices locally. Some forecourts are more diesel-friendly than others.”
Not content with charging the earth for a Grab Bag of Quavers and a pine forest Magic Tree, service stations seem to think they can charge what they like for petrol, too.
Prices at the pumps at your average motorway services can be 10p a litre higher than elsewhere, but that’s soon going to change, say the Government.
They want to make them advertise their prices on the road, to create competition between service stations and ‘drive’ prices down. So you will never again be stuck at the South Mimms Welcome Break with tears in your eyes and a petrol bill of £2 million pounds. It happens in France already, so it must be good, right?
Pete Williams from the RAC welcomed the proposal, which is currently being drawn up by the Downing Street Policy Unit.
‘This is welcome news for motorists and commercial drivers but we still need motorway services to be transparent and fair on all their prices. They have held the motorist to ransom for far too long – let’s hope that Number 10 encourages them to sort out their food prices and their parking charges too.’
Encouraging words for anyone who has ever had to extend their mortgage so they can buy a Costa coffee and a tuna melt panini that tastes like fish weetabix.
The price of diesel and unleaded fuel for UK buyers has risen in most European countries compared to last summer, according to a survey by Post Office Travel Money.
This hike has been sharpest in the places that British travellers are most likely to visit, so if you’re getting stung at home, you’ll be getting stung on holiday too. Over in Spain, the price of petrol has shot up by 7.4% in a mere 12 months, while in France, the price has gone up by 4.7%.
Of 17 European countries surveyed, only Croatia, the Czech Republic, Switzerland and Denmark had cheaper petrol for UK drivers in April 2013 compared to April 2012. If you want a bargain, you’ll have to go to Andorra or Luxembourg. PARTY!
Another reason it’ll be mondo-expensive is that sterling has slumped in value against Euro currencies. So, the price of fuel has gone up AND the exchange rate will give you even less. Diesel has risen in most countries too.
Andrew Brown, of Post Office Travel Money, said: “The disparity between what motorists pay for diesel and for unleaded petrol in Europe is in marked contrast to the UK, where diesel has long been more expensive. This was just one of the anomalies we picked up in this year’s survey, another being a difference of up 48p a litre in fuel costs across the eurozone.”
“It may not make sense for holidaymakers to plan big detours just to save a few pounds, but the higher price of motoring on the Continent this year means they should plan their routes carefully before setting out so they keep costs down.”
With that, a small price war has ensued with Morrisons first to offer cheaper fuel, taking off 2p per litre. Sainsbury’s, Asda and Tesco soon got in on the action.
It isn’t all good news though as motoring groups have noticed that fuel prices are still wildly varying from postcode to postcode.
The AA said: “Although the reduction in the price of diesel is very welcome, the question is to what extent this is reflected in rural areas where it is essential for country business and activities.”
“There is traditionally a springtime fall in the cost of diesel as the demand for heating oil, which comes from the same part of the oil barrel, drops off.”
Still, with an improved exchange rate and better wholesale prices, in addition to a rise in fuel duty being cancelled last September, any savings aren’t to be sniffed at. Wholesale petrol prices are also currently falling, which could mean a 1p drop in petrol prices. Not a life changing amount, but definitely better than a kick in the stones.