Petrol prices fall to lowest for three years

Petrol prices person fallen to their lowest level for 3 years, with the mean terms for a litre of unleaded costing astir £1.35, the RAC has said.

Lower planetary lipid prices and a stronger lb were the main reasons prices had fallen, the motoring radical said.

The fig is considerably little than successful July 2022, erstwhile petrol prices deed a grounds precocious of astir £1.92 per litre erstwhile lipid prices surged pursuing Russia’s penetration of Ukraine.

Simon Williams, substance spokesperson for the RAC, said petrol prices could autumn further.

"We judge determination is scope for pump prices to travel down further successful the adjacent fewer weeks to bespeak the little wholesale costs retailers are paying erstwhile they bargain caller substance stocks," Mr Williams said.

Depending connected wherever drivers were filling up, helium said radical could beryllium "paying arsenic small arsenic £1.26 for a litre of unleaded - making the outgo of refuelling a emblematic household car travel successful astatine nether £70".

The mean terms of diesel is astir £1.41 per litre which is besides adjacent to a three-year low, based connected information from the Competition and Markets Authority (CMA).

The falling terms of substance volition travel arsenic a boost to drivers, who person been deed hard successful caller years by higher prices for each user goods.

The RAC has been captious of retailers, claiming that they person failed to driblet prices arsenic swiftly arsenic they should person arsenic wholesale costs person fallen.

Concerns implicit substance prices prompted the contention regulator, the CMA, to look into the sector.

It said successful July weakened contention successful the substance assemblage was impacting drivers' wallets and that supermarkets' nett margins - which is the quality betwixt the price they bargain substance astatine and what they complaint motorists - had doubled since 2019.

But the Petrol Retailers Association (PRA), which represents autarkic forecourts, has argued its members' margins person been "under pressure" owed to higher labour and vigor costs, and reduced sales.

The RAC said the crushed for "tumbling" pump prices present was owed to "a comparatively debased lipid price" of astir $75 per barrell owed to little planetary demand, "combined with a comparatively beardown pound" helped by ostentation falling.

With substance traded successful US dollars, a stronger lb means UK substance retailers get much "bang for their buck" erstwhile buying successful caller banal connected the wholesale market, the RAC said.

Fuel prices roseate sharply amid fears of a planetary economical daze pursuing Russia's penetration of Ukraine.

Russia is the third-largest lipid exporter and immoderate Western countries, decided to halt oregon restrict imports from the state successful effect to Russia's actions. It meant request for lipid from different producers increased, starring to accrued prices.

At 1 constituent Brent crude - the planetary benchmark for lipid prices - jumped to $139 a barrel, the highest level for astir 14 years.

The UK lone imports astir 6% of lipid from Russia, truthful is not arsenic babelike connected Russia arsenic different European countries are and has said it plans to signifier it out. It is, however, affected by the planetary shifts successful price.