Owning and maintaining a car can be expensive business – not only have you got the price of the car itself, but there are also the added extras of insurance and fuel to worry about. It’s a heavy weight on your wallet, but it seems drivers can breathe a slight sigh of relief as fuel prices have dropped once again.
With petrol now at 117p per litre and diesel at 118, as opposed to the 131p and 135p figures they held last year, it seems that soon we may be looking at fuel prices dropping below the pound. Of course this is only a prediction but with the way things are going, it may mean this dream becoming a reality. Here are some of the factors that could cause another drop:
The Price of Crude oil
The price of crude oil is the biggest part that plays into the price at the pumps. Last year, the wholesale price of crude oil was $111 per barrel, now it sits at a low $55 per barrel. According to a fuel specialist at the RAC, for the price at the pump to drop to below a pound, “we would need to see the price of a barrel drop to $45”. So it’s clear to see that we’re not far off.
With oil being priced in dollars, it means the cost of filling up in the UK is helped by an advantageous exchange rate. “The price of oil has to combine with the pound being strong against the dollar”, and as the current exchange is $1.55 and the pound is trading better than ever, it bodes very well for your wallet.
Right Place, Right Time
There are already some pumps to be found where the price of fuel is a pound but you must have a lot of luck on your side. London tends to be the most costly of areas for fuel, as well as stations near airports and motorways but according to Pete Zaborszky from petrolprices.com, the cheapest regions are Gwent, Warwickshire and Lancashire. He also says that “Supermarkets are generally the cheapest places for fuel.”
Whatever the price, you don’t want to find yourself asking ‘have I put the wrong fuel in my car?’ If you have, don’t panic give us a call on 0800 634 9827.