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<\/p>\nPetrol prices are at their lowest in more two years after falling more than a quarter from their record peak last year, the RAC has said.<\/p>\n
The motoring organisation says a litre\u00a0of unleaded petrol now costs 142.57p on average at the pumps, a price not seen since the end of October 2021.<\/p>\n
It is around 10p a litre cheaper than in the run-up to last Christmas, but diesel prices have not fallen at the same rate – sitting at around 154.33p per litre.<\/p>\n
RAC fuel spokesman Simon Williams said the drop comes during one of the busiest times of year on the roads, as motorists pack up to visit loved ones for Christmas.<\/p>\n
But the Competition and Markets Authority (CMA) has warned the decline has not been keeping in line with the falling wholesale price of petrol.\u00a0<\/p>\n
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Petrol prices have fallen to their lowest level in more than two years after continuous rises fueled by demand and Russia’s invasion of Ukraine<\/p>\n
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Prices peaked at an average of \u00a31.92 a litre last year (pictured: a BP fuel pump on the M25 in June 2022, showing a price of \u00a31.95 per litre of standard unleaded<\/p>\n
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Petrol prices are now at an average of\u00a0142.57p per litre across the UK, according to motoring body the RAC<\/p>\n
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Diesel prices are also falling, albeit not at the same rate – sitting at around 154.33p per litre<\/p>\n
Mr Williams said: ‘This is good news for drivers, especially as prices should continue to come down in the run-up to Christmas due to the wholesale price being significantly lower.<\/p>\n
‘While the biggest retailers haven’t announced any headline-grabbing big cuts, prices are falling steadily every day which is encouraging.<\/p>\n
‘We just have to hope this continues in the coming days.<\/p>\n
‘If wholesale prices are reflected more fairly at the pumps, we should see the average price of petrol drop below 140p in the next week.<\/p>\n
‘While diesel isn’t at similar low point – as it averaged of 6p less than its current 150.29p in August – it’s still down from last Christmas’s dizzying prices of around 175p a litre.’<\/p>\n
Petrol prices rose at the start of last year amid rising demand for fuel as the coronavirus pandemic tapered off and Russia’s invasion of Ukraine.<\/p>\n
That drove pump prices to a record high of \u00a31.92 per litre for petrol and \u00a31.99 for diesel.<\/p>\n
But as prices dropped, the CMA launched an investigation amid concerns that the savings were not being passed to consumers.<\/p>\n
Its findings, published in July, concluded that supermarkets had made an extra \u00a3900million on the forecourts by not cutting their prices in line with the wholesale cost of fuel.<\/p>\n
It prompted a recommendation that petrol stations share price data with third parties – meaning websites and apps can be made showing official prices direct from the source, enabling motorists to get the best deal.<\/p>\n
The Government, responding to the report, said it would give new powers to a public body to monitor petrol prices and flag concerns to ministers.<\/p>\n
Motoring body the AA said of the CMA’s findings: ‘Sadly, it has taken more than 15 years for a government and competition watchdog to recognise this and do something about it.\u00a0<\/p>\n
‘However, action that is better late than never is greatly appreciated by motorists across the UK.’<\/p>\n