Posted on: 5th Jan 2015
Let’s hear 3 cheers for the new petrol prices! It’s a five-year low. And it’s been a long time coming.
Finally, we can all relax a little and take a little sigh of relief as we no longer – at least in the short term – have to drive past petrol stations watching the price of our fuel go up before our very eyes. You only had to blink and the cost of a full tank had rocketed into the stratosphere.
So let’s just enjoy the moment. The moment that the price of unleaded petrol has fallen to its lowest level in five years, bringing smiles and jubilation for motorists and businesses.
Let’s revel in the knowledge that the average unleaded price across the UK is now just 109.8p a litre, as far as information group Experian Catalist reports.
Unless you’ve been hiding under a stone, you should know that recently, the four big UK supermarkets have slashed their prices by 2p a litre, in response to the falling cost of oil.
Just last week Brent Crude dropped to below $50 a barrel for the first time since May 2009.
The last time prices dipped below 110p…was back in January 2010. Way too long ago for us to remember when. The price of diesel is at its lowest since March 2010 when it was 116.87p per litre.
How Low Will Petrol Prices Fall?
That’s the question. No-one predicted the fall in petrol prices six months ago. So it would be pure guesswork to say how much lower it could go. But analysts have been predicting the cost at the pumps could go as low as £1.00 a litre.
And we will all benefit. And not just at the petrol pumps, but through heating costs, and on airfares as well as in the supermarket and on the high street.
What About The Tax?
Of course, the price of oil isn’t the only factor in what we pay. Most of the cost is VAT. If a tank of petrol costs £60, VAT and fuel duty will account for around £40.
It’s getting to a point where the share that the Treasury takes is becoming a bitter pill for motorists and retailers.
Let’s hope we see some commitment from all the major political parties that they will not look to increase fuel duty in the next parliament.
Meanwhile, fill your tanks and enjoy!