Petrol prices drop to lowest level in almost five years
Drivers of gasoline vehicles are now benefiting from the lowest fuel prices recorded since summer 2021, according to new analysis.
The average cost of a liter of petrol in pre-trials in England is currently 131.91p, the RAC said.
This marks a significant decline; prices haven’t been this low since July 2021, when they averaged 131.81 pence per litre.
The motoring organization highlighted that petrol prices have fallen by more than 5p since the start of December, saving drivers around £3 when filling up a typical 55-litre family car.
Diesel prices have also fallen by 3p per liter since the beginning of January, to an average of 140.97p.
The decline is attributed to the decline in the global oil price, which fell below US$60 per barrel on January 7; This is a level not seen since February 2021.
RAC head of policy Simon Williams said: “Seeing the price of petrol fall below 132p is a real boost for motorists, returning prices to levels we last saw four and a half years ago.
“With even cheaper prices available depending on where drivers fill up, it’s a positive start to the year for household budgets.
“January price declines would likely have been larger if retailers had passed on more of the savings they made when purchasing new fuel supplies from the wholesale market.”
A report published in December by the UK’s competition watchdog, the Competition and Markets Authority, found that fuel retailers’ profit margins had increased compared to the previous year.
He said this could not be explained by operating cost pressures as claimed by supermarkets and other fuel retailers, signaling that competition in the sector was “weak”.
