Petrol Prices Plunge to Five-Year Low
Drivers in the UK are currently enjoying the most affordable petrol prices since the summer of 2021. Recent analysis reveals the average price per litre at UK forecourts has dropped to 131.91p, a significant decrease from earlier months.
Petrol Prices Drop to a Five-Year Low
This reduction marks one of the lowest averages seen since July 2021, when prices were 131.81p per litre. Since the start of December, petrol costs have decreased by over 5p, which translates to nearly £3 savings for drivers filling a typical 55-litre family car.
Impact on Diesel Prices
Diesel prices are also declining, down by 3p per litre since early January, averaging 140.97p. This trend follows a significant drop in the global oil prices, which fell below US$60 per barrel on January 7—marking a low not seen since February 2021.
Expert Commentary
Simon Williams, head of policy at the RAC, commented, “Seeing the price of petrol dip under 132p is a genuine boost for drivers.” He emphasized that this price point brings back the cost levels last experienced four and a half years ago.
Retailer Profits Under Scrutiny
Williams indicated that if retailers had passed on more savings from their wholesale purchases, January price reductions might have been more significant. A report from the Competition and Markets Authority (CMA) highlighted increased profit margins among fuel retailers over the past year, raising concerns about competition within the sector.
- Current average petrol price: 131.91p per litre
- Last observed low: 131.81p in July 2021
- Savings for a 55-litre fill-up: Nearly £3
- Average diesel price: 140.97p per litre
- Global oil price dip: Below US$60 per barrel
- CMA report highlights weak competition among retailers
The recent price drops provide a positive financial outlook for UK motorists, benefiting household budgets as they navigate the start of the year.
