If you drive, now might be the perfect time to top up your tank. Petrol prices have hit their lowest point since July 2021 – but experts are warning that’s probably as cheap as it’s going to get.
According to the AA, the average price of unleaded dropped to 132.3p per litre last Thursday (29 May), down from about 135.5p in early April. It’s a decent saving, but the dip in price has now almost stalled completely – so if you want to make the most of it, don’t wait around.
They’re saying the steady fall in prices we’ve seen lately has slowed to a trickle. And even though the price of oil dropped by $15 a barrel in April, it hasn’t led to the bigger pump price cuts many were hoping for.
Diesel prices? Not much better. They’re currently averaging 138.5p per litre, pretty much the same as they were back in October.
Even with these lower prices, it’s worth remembering that fuel costs are still being artificially held down by a 5p-per-litre tax cut introduced back in 2022. With VAT added, this means petrol and diesel are currently around 6p cheaper per litre than they would be without that cut.
So without it, petrol would be sitting at about 138.3p, almost where it was in late 2021 – and only a few pence off the record high of 142.5p back in 2012.
Luke Bosdet from the AA says, "The importance of the continuing 5p cut cannot be underestimated."
"Without the duty cut, petrol would still be uncomfortably close to the record level seen before the pandemic and Ukraine war economic shock. The Chancellor needs to consider this in upcoming tax deliberations."
Bosdet also pointed out that petrol prices have been bouncing all over the place recently. In the last couple of months, wholesale prices dropped, jumped back up, dipped again, and rose once more – making it hard to predict what’s next.
Even though oil is still about $10 cheaper per barrel than it was in early April, that hasn’t really translated to much at the pumps – which is understandably frustrating for drivers.
