Petrol prices have hit a three-year low, as a result of a drop in oil prices and the strength of the pound.
The RAC reported that the average price of a litre of fuel at UK forecourts on Tuesday was 135.7p. Following Russia’s invasion of Ukraine in February, petrol prices soared to a record high of 191.5p per litre in the summer of 2022.
Responding to the price fall, RAC fuel spokesperson Simon Williams said: “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 explained that drivers could be paying as little as £1.26 for a litre of unleaded, depending on where they live. This would mean the cost to fill the tank of a typical family car would come in at under £70.
Simon continued: “A relatively low oil price, caused by lower demand globally, and a relatively strong pound are the two factors that are contributing to pump prices falling.
“Thankfully, we’re now a long way from the record high prices of July 2022, and we believe there is scope for pump prices to come down further in the next few weeks to reflect the lower wholesale costs retailers are paying when they buy fresh fuel stocks,” he added.
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It’s also good news for diesel drivers, as the average price is currently at £1.41 per litre which is also close to a three-year low, based on data from the Competition and Markets Authority (CMA).
The plummeting cost of fuel is set to be a welcome boost for motorists who have felt the crunch of skyrocketing prices to fill their tank for even a daily commute in recent years, as a result of higher prices for all consumer goods.
The RAC has hit back at retailers, claiming that they have failed to drop prices as quickly as they should have as wholesale costs have fallen.
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