Motorists in the U.K. are currently benefitting from the lowest average petrol prices in nearly three years, a recent AA report states.
In November, the average price of petrol at the pump has fallen to 130.44p, a substantial drop from the 132.16p October average, which was significantly less than September’s 138.38p average.
For diesel motorists, the AA also reported that diesel prices have fallen from an October average of 139.12p per litre to 137.78p.
The fuel price data used by the AA was supplied by the Experian Catalist research firm.
The lowest price for petrol at supermarkets in developed areas varied significantly. Towns with strong market competition experienced an average petrol price of 126.7p. Coastal towns or those with a small market had an average of 131.9p, the report said.
AA president Edmund King said, “You cannot understate the importance of lower pump prices. That is why, when the independent retailers say they would get significant savings from delaying the payment of fuel tax, the AA wholeheartedly supports the move if it helps the remote rural and other small petrol stations to survive.”
“But in the many towns where our members and other drivers complain about pump prices being 5p a litre higher than a few miles up the road, extra relief for the retailers should be reciprocated with fairer pump prices,” King continued.
A combination of factors has led to lower prices at the pump. In addition to a stronger pound, gas prices usually decline in the fall due to less demand and a switch to cheaper, cold-weather blends.
Tom Kloza, chief oil analyst at GasBuddy.com, a petrol information and pricing website, stated, “In the cooler months, kids are back in school, people go back to work full time, and there’s less of an opportunity for recreational consumption.”
According to Michael Green, a spokesman for AAA, the U.S. equivalent to AA in the U.K., the recent announcement that the U.S. will not intervene in Syria has also eased pump prices.
“Syria doesn’t produce much in the way of oil, but the possible consequences of a U.S. strike could have threatened other areas of the Middle East where oil is produced. Since oil is traded on a global market, this affects the price of oil everywhere,” said Green.
However, there are warning signs that petrol prices could begin rising again soon.
Pete Williams, the RAC’s head of external affairs, said, “Sadly, petrol and diesel prices may have gone as low as they can for the time being and may now unfortunately be on the way up again.”