Relief for businesses as fuel cost falls

Across the country businesses have welcomed the recent drop in fuel costs, which has seen average petrol prices in the UK fall by 6.4 pence in a month.

In mid-July average petrol prices fell from 19.5p per litre to 113.1p. In the past month the average price of diesel as fallen from 131.5p per litre to 125.5p which shows a saving of 6p a litre.

The price drops are the first significant reductions in the cost of fuel since August 2006 when the supermarkets sparked a price war which resulted in a 12.5p and 8p reduction in the cost of a litre of unleaded and diesel respectively between August and November.

However, filling up a tank is still costing more than it should, according tho the AA.
In the AA's latest mid-monthly fuel price report, they said that since July 11th when the wholesale price for petrol coming into the UK peaked, the wholesale price has fallen by 18%.

This equates to an 8.5p per litre reduction in the pump price of petrol , which argues the AA, should bring the UK forecourt average down to 112.2p per litre.
Paul Watters, head of AA Public Affairs said "Whichever way you look at it many drivers are being short-changed by around £1 a tank when they fill up with petrol in the UK."
"The AA accepts that small retailers, particularly those in rural areas, are likely to charge more for fuel to cover overheads.
"However, larger petrol suppliers still have some way to go to pass on wholesale savings."

PetrolPrices.com agreed that only a handful of retailers have slashed prices, making the gap between the highest and lowest priced fuel wider than ever, it shows 25p for diesel and 20p for unleaded, compared to a normal differential of 17p.

Brian McLoughlin, founder of PetrolPrices.com stated "This means it is more important than ever to compare fuel prices and shop around."

London continues to sell the most expensive petrol in the UK, with Northern Ireland close behind.
Although Scotland has experienced the biggest fall in the price of petrol, the cheapest regions are the north-west and Yorkshire and Humberside.
Northern Ireland, the most expensive region for diesel, has seen its average price fall by the smallest margin in the UK.