Fuel forecourt prices in 2023 have been reported as the second highest on record by the AA. Despite a recent decrease in petrol prices at the pump, this year has still seen substantial costs for drivers, with the average cost per tank surpassing the figures from 2019.
According to the AA, motorists have faced an increase of £12.50 to fill their tanks compared to pre-pandemic prices in 2019. This figure translates to an additional cost of £21.42 for van drivers per tank.
However, there has been a slight respite this week in terms of fuel costs. The average price of petrol dropped to 141.30p per litre, marking the lowest point since mid-October 2021. Diesel prices have also seen a decline, averaging at 149.14p per litre, aligning closely with figures from the second week of August.
Over the past month, petrol prices have seen a reduction of approximately 9p per litre, resulting in a saving of nearly £5 for a full tank. Since early October, the cost of filling a standard 55-litre petrol tank has decreased from £86.42 to £71.72, equating to a saving of £14.70 for drivers. Likewise, after reaching 163.11p per litre in September, the cost of filling an 80-litre tank for a Transit van has dropped from £130.49 to £119.31.
There’s a heightened competitive atmosphere among fuel retailers, driven partly by the Competition and Market Authority’s investigation into the road fuel market. Additionally, the government’s initiative to introduce statutory pump-price transparency has further fueled this competition.
Luke Bosdet, a spokesperson from the AA, noted that while current petrol prices reflect a two-year low, they’re still a far cry from the rates before the COVID-19 outbreak and the Ukraine conflict. Despite recent drops, it remains uncertain whether these decreases will stabilize or potentially lead to higher prices. However, there’s a likelihood that road travel costs during Christmas will remain around 10p per litre cheaper compared to the same period last year.
The decrease in petrol prices has played a significant role in contributing to a notable drop in the UK’s annual inflation rate, falling to 3.9% in November from 4.6% in October, marking the lowest in two years. The AA expresses optimism that pump prices might gradually return to levels seen before the pandemic.