Fuel prices fell by 6.5p a litre last month saving drivers £3.60 a tank, according to the RAC. The fall means continuing good news for drivers and the economy with petrol down by 15.5p a litre since May and diesel down by an even better 18.5p.
However, there are fears the falls will create headroom for the Chancellor, Rachel Reeves, to end a 5p a litre freeze on fuel duty as she looks to fill a black hole in the government’s finances. The RAC said a litre of unleaded averaged 134.79p in September, while diesel fell from 146p to 139.5p. This means drivers are now saving £3.60 every time they fill up an average 55-litre family car.
The drop at the pumps was sparked by the continued reduction in the cost of a barrel of oil from $78 at the beginning of September to $72 at the end, although the figure has ticked up in recent days due the crisis in the Middle East.
The RAC said: “Since the start of May petrol has tumbled 15.5p from 150.3p a litre, which equates to an £8.50 saving on a complete fill-up, while diesel has come down by a whopping 18.5p from 158p, saving drivers £10 on a full tank.”
Its research showed that drivers who buy their fuel at one of the big four supermarkets are currently saving 3p a litre compared to the UK average. RAC head of policy Simon Williams said: “Drivers will be very pleased to see prices at the pump not only continuing to fall but dropping by 6.5p in just a month as this translates to saving £3.60 on a full tank.
“Since the start of May prices have come down dramatically, with 15.5p being shaved off unleaded and 18.5p off diesel. The reductions have primarily been driven by a drop in the price of oil from above $90 in early April to below $70 briefly in mid-September, supported by a slightly stronger pound which makes wholesale fuel cheaper as it’s traded in dollars.”
The RAC offers a fuel finder feature in the free myRAC app to help drivers shop around for the cheapest fuel. Up to nine searches a day can be made over a two, five or 10-mile radius, with each giving the five cheapest prices.