Fuel Prices – Can we expect them to continue falling?

Like countless other nations the United Kingdom is heavily reliant on using petrol to get around and over the past decade or so there has been a growing concern as prices have become more expensive. British citizens have been so used to increases in fuel charges that there was some relief at the annual fall of 3.6 per cent in February. This was the largest yearly reduction in 18 years and led to increases in disposable income. As a result, retail sales volumes, internet sales and spending on household goods all rose in early 2015.

Inflation dropped to a record low in February and Scotiabank analyst Alan Clarke described recent consumer trends: “If you wanted a demonstration that low food and energy prices are good for consumer spending, then this is it. People are clearly not deferring their spending plans amid deflation speculation – they are spending the windfall.”

Residents in some of the UK’s rural areas are set to benefit from fuel price cuts from May 31. The Rural Fuel Rebate, which has been approved by the European Union, will give fuel discounts to drivers across 17 of Britain’s most rural places. Those with the highest fuel prices will have reductions of 5 pence per litre and will affect around 125,000 according to government figures. Petrol in remote communities is more expensive than other parts of the UK. Areas that will benefit from the price cut include Cumbria, Northumberland, Devon and 11 Highland postcodes in Scotland.

What does this mean for the rest of Britain? Well, according to the BBC the drop in fuel prices is not going to be sustainable throughout 2015 and a spokesman for the AA believes rises are inevitable. They have discovered that the price of diesel is now 118.19 pence a litre – a rise of 3.13 pence in just one month. Scotland has the priciest fuel – costing 112.5 pence for a litre of unleaded fuel and 118.9 for diesel. Therefore, it is not surprising the majority of areas with the fuel cuts are in Scotland.

Chancellor George Osborne cancelled a planned increase in petrol duty in the 2014-15 Budget, which would have seen a rise of 0.54p per litre from September. The Chancellor said: “I want to help families with the cost of filling up a car. It’s a cost that bears heavily on small businesses too… I want to make sure that the falling oil price is passed on at the pumps. So I am today cancelling the fuel duty increase scheduled for September.”

Although fuel prices could well increase for the bulk of UK motorists later this year, our fuel removal services at Wrong Fuel Expert are swift, affordable and environmentally friendly. Our fully qualified engineers get your car back up and running before you know it, so putting the wrong type of fuel in your car no longer has to be an issue if you call us quickly after realising you’ve used the wrong pump. This is a fairly common error, so do not fret – call us as soon as you realise and we will get to you quickly.