Petrol prices fall to lowest level in more than two years and now costs 142.6p a litre at the pumps – down from its 191.3p peak in 2022
Petrol prices are at their lowest in more two years after falling more than a quarter from their record peak last year, the RAC has said.
The motoring organisation says a litre of unleaded petrol now costs 142.57p on average at the pumps, a price not seen since the end of October 2021.
It is around 10p a litre cheaper than in the run-up to last Christmas, but diesel prices have not fallen at the same rate – sitting at around 154.33p per litre.
RAC fuel spokesman Simon Williams said the drop comes during one of the busiest times of year on the roads, as motorists pack up to visit loved ones for Christmas.
But the Competition and Markets Authority (CMA) has warned the decline has not been keeping in line with the falling wholesale price of petrol.
Petrol prices have fallen to their lowest level in more than two years after continuous rises fueled by demand and Russia’s invasion of Ukraine
Prices peaked at an average of £1.92 a litre last year (pictured: a BP fuel pump on the M25 in June 2022, showing a price of £1.95 per litre of standard unleaded
Petrol prices are now at an average of 142.57p per litre across the UK, according to motoring body the RAC
Diesel prices are also falling, albeit not at the same rate – sitting at around 154.33p per litre
Mr Williams said: ‘This is good news for drivers, especially as prices should continue to come down in the run-up to Christmas due to the wholesale price being significantly lower.
‘While the biggest retailers haven’t announced any headline-grabbing big cuts, prices are falling steadily every day which is encouraging.
‘We just have to hope this continues in the coming days.
READ MORE: The £1bn fuel bonanza: Report says retailers ripped off drivers by keeping prices 6p a litre higher than necessary last year
‘If wholesale prices are reflected more fairly at the pumps, we should see the average price of petrol drop below 140p in the next week.
‘While diesel isn’t at similar low point – as it averaged of 6p less than its current 150.29p in August – it’s still down from last Christmas’s dizzying prices of around 175p a litre.’
Petrol prices rose at the start of last year amid rising demand for fuel as the coronavirus pandemic tapered off and Russia’s invasion of Ukraine.
That drove pump prices to a record high of £1.92 per litre for petrol and £1.99 for diesel.
But as prices dropped, the CMA launched an investigation amid concerns that the savings were not being passed to consumers.
Its findings, published in July, concluded that supermarkets had made an extra £900million on the forecourts by not cutting their prices in line with the wholesale cost of fuel.
It prompted a recommendation that petrol stations share price data with third parties – meaning websites and apps can be made showing official prices direct from the source, enabling motorists to get the best deal.
The Government, responding to the report, said it would give new powers to a public body to monitor petrol prices and flag concerns to ministers.
Motoring body the AA said of the CMA’s findings: ‘Sadly, it has taken more than 15 years for a government and competition watchdog to recognise this and do something about it.
‘However, action that is better late than never is greatly appreciated by motorists across the UK.’
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