Fuel prices fall

  • Cost of petrol falls 8p per litre in two months
  • Price of diesel still 5p higher than petrol
  • August could see a 3p increase, however

UK motorists have been given a respite from the growing cost of fuel as the price of petrol fell by 8p per litre over the previous two months.

The cost of petrol dropped 4.1p per litre in May followed by a further decrease of 4.63p per litre from the middle of May, according to the AA Fuel Price Report for June.

This means the cost of unleaded has dropped in total from 142.48p per litre in mid-April to an average 133.77p per litre.

Diesel car owners, however, continue to be hit hardest at the forecourt and have not seen the same reduction. In May diesel prices came down by 3.6p per litre, while June has so far has seen a drop of 4.99p a litre.

The cost of diesel now sits at a UK average of 138.99p per litre, which has come down from 147.9p per litre in the last two months. Despite this the gap between diesel and petrol continues to be around the 5p per litre mark.

Asda and Sainsbury’s have also announced further cuts of up to 3p per litre. The cost of petrol at Asda’s 195 forecourts will now be 129.7p per litre, when previously it was 134.7p per litre. This was followed by the announcement that Tesco would be doing the same.

While this is all good news for hard-up car owners, the AA has warned that prices could go up again in August, by 3p per litre, if the Treasury’s threatened increase goes ahead.

The AA believes that calls from the Transport Secretary, Justine Greening, for fuel price transparency may have helped contribute to the price decrease. At the same time the cost of oil has been slowly falling which could also have contributed to the light relief for drivers.

Parkers top tip

To see whether you are better off buying petrol or diesel, use the Parkers Cost of Motoring Tool to see which is the most cost effective.