RAC Reports Biggest Drop in Pump Prices of the Year

September 23, 2024 TruthUSA

Due to a strong pound and a recent drop in oil prices, average pump prices have decreased.

Both petrol and diesel prices are declining at a faster rate than at any other point in 2024 so far, recent analysis indicates.

This drop in prices in September, described as “good news for drivers,” has seen both fuels being 7 pence cheaper than a month ago, according to figures from automotive services company RAC.

Drivers have observed unleaded petrol prices reducing from 141.26 pence to 136.15 pence, resulting in savings of nearly £4 for a full tank. Diesel, on the other hand, has experienced a decrease from 145.99 pence to 140.87 pence.

The RAC Fuel Watch analysis highlights that costs are currently at their lowest in almost three years.

“It’s very encouraging to witness pump prices dropping so rapidly, which we know is advantageous for drivers’ finances as well as for controlling overall inflation levels,” stated RAC fuel spokesperson Simon Williams.

The primary factors driving the wholesale price down include the recent oil price decrease—prompted by reduced global demand—and the strengthening of the pound.

Last month, the pound reached a two-year high against the U.S. dollar, amid a more cautious monetary policy by the Bank of England compared to the U.S. Federal Reserve. Consequently, UK fuel retailers benefit from better purchasing power when acquiring new stock in the wholesale market, as reported by the RAC.

“Although global oil prices and pound strength can fluctuate significantly, these are elements beyond drivers’ control. Given that fuel costs represent a significant portion of many households’ monthly expenses, it is prudent to maximize the value of every pound spent on fuel. Driving efficiently—such as with a ‘light right foot’ and shifting to higher gears whenever possible—is the most effective way to do this, alongside paying less for refueling in the first place,” stated Williams.

The RAC recommended that drivers compare prices to find the best deals and indicated that there is room for further price reductions. Their analysis found that Northern Ireland motorists are currently enjoying the best prices, with pump rates lower than those across the entire UK.

In order to provide better pump prices for drivers, the RAC urged the government to implement the Pumpwatch scheme and establish a price monitoring body, as mandated by the previous administration.

Under this scheme, fuel stations nationwide are required to share fuel prices with a government-designated organization to prevent price gouging by fuel retailers.

Looking forward, the RAC anticipates average pump prices to drop to a three-year low by the end of September. However, last month, they cautioned that an increase to 58 pence per liter is imminent, depending on the adjustments outlined in the October Budget by the Labour government.

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