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Petrol prices fall for first time this year

·2-min read

Petrol prices have fallen for the first time this year, new figures show.

Analysis by the PA news agency showed that average prices across UK forecourts reached an eight-year high this summer after rising for 39 consecutive weeks.

But Government figures show a reduction of a fraction of 1p per litre was recorded on August 23.

Motorists are typically being charged £1.35 per litre for petrol, with a litre of diesel costing £1.37.

In May last year, average costs for a litre of fuel were £1.05 for petrol and £1.12 for diesel, as the global shutdown caused by the coronavirus pandemic led to a collapse in oil prices.

Since then, the cost of filling up a 55-litre family car has risen by around £17 for petrol and £14 for diesel.

RAC spokesman Rod Dennis told PA that drivers can “at last breath a sigh of relief” that the constant rise in petrol prices is over “for now”.

But he added: “A meeting of some of the biggest oil-producing nations on Wednesday will, at least in the short-term, have the effect of firming up the oil price, meaning that it is unlikely that forecourt prices will fall in any significant way in the next few weeks.

“Decisions about oil supply combined with international progress in getting through the pandemic and increasing economic activity are two of the major factors that will determine the direction pump prices take over the coming months.”

A cleaner form of petrol began being rolled out at filling stations across Britain on Wednesday.

E10 petrol, which is made with up to 10% bioethanol – a type of renewable fuel – is becoming the standard offering at forecourts as part of efforts to cut carbon emissions.

It is replacing E5 petrol, which is blended with up to 5% bioethanol.

AA analysis found that the 2.4p per litre fall in the wholesale cost of petrol since last week was more than 10 times higher than what the Government predicted would happen following the introduction of E10.

This negates the new fuel’s slightly lower efficiency, the motoring organisation stated.

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