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Back to Motoring & Home News


Fuel prices 'to level out'


Rocketing fuel prices are set to level out - at least in the short-term - according to the AA.

Pointing to a fall of 2p per litre in the price of wholesale petrol over the last week, the motoring organisation warned that the decrease is only likely to be temporary. It said that the situation has been created by a 10% drop in oil prices - itself resulting from the uncertainty in Eurozone markets.

But before the stock markets right themselves, the AA is urging fuel suppliers and retailers to pass on the benefit of lowered prices to "cash-strapped drivers".

Petrol prices have been rising to new highs since breaking through the previous high of 119.7p per litre, recorded in July 2008. And since the end of April, when the AA predicted that fuel duty would be one of the most important topics for voters in the General Election, prices have risen by a further 0.3p.

According to fuel comparison website PetrolPrices.com, the current average cost of unleaded petrol stands at 121.6p per litre, while diesel costs 123.0p.

AA president Edmund King said: "We have to be realistic that this may be only a temporary drop in the wholesale price and we have to recognise that some retailers are down to the bone on their margins.

"Cash-strapped drivers, however, would welcome any stalling of pump prices that last levelled off at around 112p a litre in February."

"Talk to anyone who works in the country or organisers of volunteer driver services and you will see instantly the severe impact of record pump prices."

Meanwhile, the British Insurance Brokers' Association has suggested that up to 150,000 drivers put the wrong fuel in their car each year. According to the group, 95% of this number owns diesel-powered vehicles, and the cost of rectifying the mistake can range between 300 and 5,000.

It also warned that nearly one-in-three insurance companies do not pay out for the so-called 'mis-fuelling' claims.

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