Average petrol prices continue to drop

Average petrol prices continue to drop

Petrol prices have fallen for a fourth consecutive month, according to the latest RAC figures.

The average price of unleaded at the end of October was 107.8p, compared to 109.5p at the start of the month, the RAC Fuel Watch found.

This is equivalent to a saving of 90p on the cost of filling up an average 55-litre family car.

The RAC says this is a welcome surprise for drivers who had possibly grown used to prices only rising just 12 months ago. It expects little change over the two weeks ahead.

Motorists filling a 55-litre vehicle paid £5.08 and £5.87 less for unleaded and diesel respectively compared to the start of July.

Diesel drivers were only marginally better off last month, however. They ended October paying 0.31p per litre less than they did at the start. This almost hit the near six-year record low of 109.76p seen in early September.

The continued run of lower fuel prices is being driven by the oil price, which remains below 50 US dollars a barrel - despite a 2% increase throughout the month.

Simon Williams, fuel spokesman for the RAC, said: "We are currently enjoying a sustained period of lower fuel prices as a result of the long-term deflated oil price which has been brought about by OPEC - the Organisation of the Petroleum Exporting Countries - looking to stop competitors taking its share of the market by overproducing and keeping the barrel price low.

"A year ago motorists had probably become accustomed to only ever seeing prices go up, so having four consecutive months of the petrol price coming down is a pleasant surprise.

"Fuel is without doubt the biggest cost of motoring and the forecourt price is a constant cause of concern for drivers, which makes this relief at the pumps all the more welcome.

"The question is how low will prices go, albeit with the caveat that two-thirds of every till receipt is made up of tax through fuel duty at 57.95p a litre and VAT on top. And, as prices head towards the £1 mark, the tax take rises to 75%."

Copyright Press Association 2015