2023 Fuel Prices: Unleaded fell to a year low in December.

2023 Fuel Prices: Unleaded fell to a year low in December.

December 2023 saw unleaded prices drop to their lowest point of the year, dipping just below a daily average of £1.40 per litre. Diesel drivers also benefited from lower pricing as prices fell from a daily average of £1.54 to £1.49 during the month. However, this was not as low as prices during June and July.

Unleaded fell around eight pence over the year but did reach a daily average of  over £1.56 in October before falling back in November and December.

Diesel also saw an increase from July to October; however, the highest prices were at the start of the year in January.

Between June and October, as unleaded prices rose, Sainsbury’s had the lowest-priced fuel of all retailers, taking over from Asda and Morrisons as the market leaders. As the wholesale prices fell through November and December, Asda, Morrisons, Sainsbury’s and Tesco all priced closely with each other. There was less than a penny difference on average between the main supermarkets. This contrasts with the period of increase earlier in the year, where we saw over three pence between Tesco and Sainsbury’s.

Diesel saw a similar trend, with the four supermarkets pricing similarly as prices fell. As the prices rose after July, Sainsbury’s had the lowest-priced diesel of all the retailers. However, Asda were also very close on price as they both drifted below Morssions and Tesco.

At the other end of the pricing spectrum, bp and Shell shared the title of the most expensive brand, with bp starting the first half of the year as the most expensive retailer before Shell took over and closed the year as the most expensive brand.

Will unleaded and diesel prices increase during 2024?

Middle East tensions are putting upward pressure on energy prices; however, Saudi Aramco, the largest oil group in the world, is also trying to maintain market share and has cut prices in Asian markets for February. This comes as OPEC raised output to try and offset supply concerns in the Middle East.

In the UK, the excise duty was cut from 57.95 pence per litre (ppl) to 52.95 ppl; this temporary cut in duty has already been extended. It remains to be seen if duty will be put back up, particularly in an election year.

It will be interesting to see how these issues affect pump pricing and if local factors play a significant role in the fuel retail market. But as we saw in 2023, brands and individual stations can become more or less competitive over time. So, check prices regularly and help other motorists by confirming or adding prices in the PetrolPrices app.

2023 fuel prices. Diesel saw a similar trend, with the four supermarkets pricing similarly as prices fell.
Greater Manchester Drops Plan for a Clean Air Charging Zone

Greater Manchester Drops Plan for a Clean Air Charging Zone

Greater Manchester has backed away from charging drivers of more polluting vehicles for entering the city. A Clean Air Zone was due to come into effect across Greater Manchester in May 2022 but was pulled in February 2022 for a review following a public backlash. Work has since been ongoing to find ways to bring Greater Manchester’s air quality in line with legal limits without adding expense to the taxpayer. Proposals to reduce air pollution in Greater Manchester were presented on 13th December, with the region’s leaders insisting their latest proposals would “deliver clean air faster than a charging zone could”. Under the latest plans, £86m, which has already been awarded to Greater Manchester by the government for clean air projects, would be spent on initiatives such as zero-emission electric buses, improved electric charging infrastructure, a clean taxi fund and measures to improve traffic flows. The Greater Manchester Combined Authority says these measures will reduce emissions more quickly and effectively than the planned chargeable Clean Air Zone.

Greater Manchester Drops Plan for a Clean Air Charging Zone

The mayor of Greater Manchester, Andy Burnham, said on a radio call-in, “There will never be a Clean Air Zone charge while I’m mayor.” He told listeners: “I don’t think we’ll get working class people behind the drive to net zero if it’s about tax, charges, bans on things – basically making their lives suffer more. The only way we can do it is to give people incentives to do the right thing.” Andy Burnham said he was concerned about the financial pressure the clean air zone charges would have had on Greater Manchester drivers.

The new plan is expected to go before the Greater Manchester Air Quality Administration Committee on 20th December, which is recommended for approval. After that, Mr Burnham’s new plan will be taken to Westminster, where he hopes it will receive government support.

Burnham insisted he was not avoiding politically difficult decisions by jettisoning the charging zone. He said the decision to take Greater Manchester’s buses back into public control — which resulted in a legal challenge from the bus sector — had been “seismic” and was now fundamental to the new clean air plan.

“The way to do this was not to push people into hardship, to threaten people’s businesses and livelihoods,” he said. “The path to net zero has to be to take people with it rather than seeking to punish people.” He belives his alternative plan would be fairer than previous proposals to charge the drivers of more polluting vans, taxis and lorries.

Other major English cities, including London, Birmingham, Newcastle, Bradford and Bristol, have all introduced charging zones to tackle air pollution. However, charging drivers of polluting vehicles has become an increasingly contentious political issue. London mayor Sadiq Khan’s decision to extend the capital’s clean air charging zone was widely held responsible for Labour’s loss of the Uxbridge by-election in July, bringing the issue to national attention.

November 2023 fuel price summary

November 2023 fuel price summary

November saw unleaded and diesel prices fall. November opened with the average unleaded price of just under £1.54 and finished with prices at just over £1.46, a reduction of 7-8ppl. Based on a 60 litre fill, this is a reduction of £4.80 a tank. These prices are also lower than those seen at the same time last year, November 2022, which closed with an average price of £1.59.

Diesel drivers also benefited from a price decrease cross November prices opened the month at £1.61 and closed at £1.55, a 6ppl reduction or £3.60 on a 60 litre fill.

Asda, who have traditionally been the cheapest supermarket, have been more expensive on average than Tesco and Sainsbury’s. However, they did finish the month with the lowest priced unleaded and diesel. Tesco managed to reduce prices and become the cheapest supermarket for two weeks during the month, but have been undercut by Morrisons, Sainsbury’s and Asda once again.

A reduction in crude oil prices has helped to reduce prices. November opened with Brent crude oil at $85 a barrel and finished the month at $80 abarrel. December has continued to see a decrease as crude prices are currently under $77 a barrel.

With wholesale prices falling, we should see prices decrease soon. We are seeing traditionally more expensive brands being lower than the usual price leaders. As such, shopping around and checking prices is the best way to save money on fuel and drive competition to help reduce pricing further.

November 2023 fuel price summary
Illegal MOTs could make drivers vulnerable

Illegal MOTs could make drivers vulnerable

The government is cracking down on fraudulent garages that carry out illegal MOTs – these culprits are not just committing fraud, they are endangering the public by putting unsafe vehicles back on the roads.

Total counts of MOT Fraud reached 1,324 last year, 2021-2022; 710 of those were the most serious cases relating to dishonesty and negligence, a 102% increase from those found in 2017-2018.* Vehicles need an MOT after they turn three years old, and then every year after that, failure to obtain a valid MOT certificate is illegal on UK roads, with motorists facing fines of up to £1,000.

The MOT test ensures the vehicle is up to environmental and road safety standards – with 60,000 privately employed MOT testers carrying out tests in around 23,000 testing stations in Great Britain annually.* According to data compiled by Quotezone.co.uk, garages that say they provide MOT prep and testing seem to have dropped from over a third, 36%, in 2019 to just 12% this year – despite a recent rise in demand for these services post-COVID.

The government has been investigating all reports of MOT fraud with site visits, vehicle inspections and even covert surveillance – with the worst cases ending up in court. Some garages have been caught simply handing out MOT certificates without even conducting a test or seeing the vehicle itself.**

Illegal MOTs could make drivers vulnerable

Safety must always be the number one priority, and motorists themselves have a duty to ensure their cars, vans, and motorbikes are safe to operate. 1 in 10 vehicles fail their MOT the first time, so they must be well looked after, and MOTs are booked in a timely fashion, to avoid delays and additional driving while they wait to be tested.

Testament to the success of the test, regulated by the DVSA, is how few mechanical issues lead to road accidents; only 2% of road incidents are due to mechanical failings.*

Motor trade insurance specialist at Quotezone.co.uk, Lee Evans, said: “This is an incredibly dangerous form of fraud; allowing customers to believe their vehicles are safe and roadworthy no doubt increases their chances of an incident on the road.

“Thankfully, it’s just a small portion of rogue garages and mechanics that are taking advantage, but it’s important all drivers double check their chosen garage is legitimate by searching reviews and selecting from approved lists of quality garages. Don’t be afraid to ask lots of questions, compare prices for parts and labour online and ask for a quote before any work commences that includes parts, labour and VAT.

“It’s also crucial to note a legal MOT is required by most car insurance providers; if an incident occurs and the vehicle is found to not have a valid MOT in place, it could render the insurance invalid and the driver unprotected. You can check the MOT status of the vehicle here on Gov.uk.

Quotezone.co.uk has provided pre-MOT checks to prepare the vehicle and help keep it roadworthy:

Check tyres:

It is important to check for any cuts or wear. It is also good to check if the tyre pressures are appropriate for the load and condition of the tyres. The minimum and legal limit for tread depth of the tyres is 1.6mm – drivers can insert a 20p into the tread to double check, the tyre thickness should be more than the first line on the coin.

Check lights:

You need to make sure your indicators, hazard lights, headlights, fog lights, reverse lights and brake lights all work. Having any of these not working or in a temperamental condition could put you, passengers and other motorists at risk.

Check brakes:

The braking system needs to be in good working order. If the car pulls to one side when applying the brakes then this indicates an issue. Look at the handbrake too and ensure it works well, especially on an incline. If you have alloy wheels, it could be possible to do a visual inspection of the brakes without actually removing the wheel.

Check fluid levels:

Be sure to top up break fluid, engine oil and screen wash, checking them on a regular basis and immediately refilling when warning lights show.

Check mirrors:

All mirrors must be secure and free of cracks. If they need replacing you can normally find ones for your car model online, but stay clear of self-adhesive types as these are not durable.

Check windscreen and wipers:

Ensure there is no damage to your windscreen. A chip or crack that exceeds 40mm will actually result in a failed MOT test. On top of the windscreen, the wipers and washers should be functional to ensure good visibility at all times.

References:

*https://movingon.blog.gov.uk/2022/05/12/mot-fraud-a-risk-to-road-safety/

**https://mattersoftesting.blog.gov.uk/tackling-mot-fraud-protecting-us-from-unsafe-drivers-and-vehicles

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.

Competition and Markets Authority has published its interim report on road fuel prices

Competition and Markets Authority has published its interim report on road fuel prices

The Competition and Markets Authority (CMA) published its Road Fuel interim update on 9th November. The final report of the CMA’s road fuel market study recommended that the government take two steps: First, introduce a statutory fuel finder scheme to give drivers access to live fuel prices and second, create a new statutory monitoring function to hold the industry to account for its fuel pricing. As an interim measure, the then Secretary of State for Energy Security and Net Zero, Grant Shapps, ordered the CMA to create a voluntary scheme for retailers to share their fuel prices and monitor developments in the fuel market. The voluntary pricing scheme went live on 31st August 2023. PetrolPrices has been publishing prices from this scheme since the beginning of September, and we continue to work with retailers and the CMA. The report published on the 9th November is the first report by the CMA in its interim monitoring role.

Competition and Markets Authority has published its interim report on road fuel prices

The interim report found that while pump prices for both petrol and diesel have increased since May 2023, this can be divided into two separate periods.

During June, July and August, this appears to have been driven primarily by increased crude oil prices and, in the case of diesel, refining spreads, both of which are caused by global factors. Retail spreads were around the long-term average for petrol and below that level for diesel.

During September and October, the CMA observed significant increases in retail spread for both petrol and diesel. In both cases, the retail spread at the end of October was significantly above the long-term average. While the retail spread increases and decreases in response to volatility in wholesale prices, these spreads should begin to return to normal levels. If retail spreads were to remain at these levels for much longer, this would cause concern about the intensity of retail competition in the sector.

In other words, in September and October, wholesale costs fell while retail prices did not. The CMA noted that petrol prices had increased by 11 pence per litre and 13.9 ppl for diesel since May 2023. The difference between the average price drivers paid at the pump and the price retailers buy fuel was 17-18 ppl at the end of October. This was deemed a significant increase by the CMA.

The Petrol Retailers Association (PRA), which represents many independent fuel retailers, welcomed the report. Gordon Balmer, the Executive Director of the PRA, said, “With the volatility of the global fuel market, it is important that motorists are given the opportunity to search for the cheapest prices available to them. As always, I would encourage motorists to shop around to find the best deals possible.”

In an interview with the radio station LBC, Grant Shapps’s replacement at the Department for Energy Security and Net Zero, Claire Coutinho, said, “During the pandemic, we saw some quite frankly shocking behaviour from some petrol bosses, who were failing to pass on savings at the pump…we will not stand for this bad behaviour. That’s why I’m giving the Competition and Markets Authority new powers to force retailers, including supermarkets, to say how much they are charging customers. Those that fail to be transparent then could face serious financial penalites, including a fine of up to one per cent of worldwide turnover, or an ongoing fine of five per cent of daily turnover. Any retailer seen to be unfairly ramping up prices, will be held to account. Drivers deserve to know they are getting a fair deal at the fuel pumps and that is exactly what our plans will do.”

According to Coutinho, the new rules as part of a statutory rather than voluntary scheme will be incorporated into the Digital Markets Bill, which is part of the government’s legislative package during this parliament.

Are you one of the 60,000 drivers paying the ULEZ charge every day?

Are you one of the 60,000 drivers paying the ULEZ charge every day?

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Find out what you need to know about ULEZ and other Clean Air Zones around the country.

In the first week of November, 2023, TfL reported that since the Ultra Low Emission Zone has been expanded to cover the whole of Greater London, roughly 60,000 vehicle drivers a day are paying the daily £12.50 fee to enter or move within the zone, worth approx £730,000 daily.

This comes despite recent research by Motorway, revealing that 52% of drivers felt they would not be able to afford the ULEZ charge. 

Is ULEZ affecting more or fewer London motorists than expected?

Is ULEZ affecting more or fewer London motorists than expected?

ULEZ expanded at the end of August 2023 to come out nearly as far as the M25 in Greater London.

All year, there’s been speculation about how many vehicles will end up paying the daily charge, rather than benefiting from scrappage schemes (since expanded so all Londoners are eligible), or upgrading their vehicle to a compliant model. RAC reported in February of this year that approx 850,000 vehicles registered in Greater London were not compliant with the ULEZ restrictions.

In the first month that followed the expansion of ULEZ from Inner London to the whole of Greater London, nearly 50,000 fewer vehicles were on the road than in June, which accounts for about 2% of all traffic, suggesting that some non-compliant vehicle owners have changed their routine transport options from cars to public transport and other solutions.

How does ULEZ work?

Like all other Clean Air Zones across the UK, Greater London’s ULEZ uses cameras to read vehicle registrations. These are checked against the DVLA’s records, and the registered keepers of vehicles that are not compliant with the Euro 4 (petrol) and Euro 6 (diesel) standards are sent a Penalty Charge Notice (PCN) if they fail to register their trip within the zone with the local authority in the correct timeframe.

In Greater London, you have to register and pay £12.50 for your trip into or within the capital before the end of the third day after travelling, in order to avoid the £180 PCN. The penalties are halved when paid within thirty days (this varies from zone to zone, around the country), however if you have failed to keep your details updated with the DVLA, you may not receive your PCN until it has gone up in value, as these are sent in the post.

If your vehicle is compliant, you don’t have to do anything. If your vehicle is compliant due to a modification or other unexpected reason, it’s worth registering it with TfL in order to avoid surprise fines.

Anybody who regularly drives in the ULEZ or another CAZ may be able to set up an autopay with the responsible authority, in order to avoid unpaid charges developing into fines, and to avoid spending lots of time registering trips.

How have other charging emissions zones affected locals?

Greater London’s ULEZ is not the UK’s first emissions-reduction scheme to penalise fewer drivers than anticipated; this past summer, Glasgow’s LEZ also started targeting non-compliant drivers, although local residents have a grace period until next year.

In the first month of the scheme being implemented, over 100 drivers were issued with penalties each day. By the end of the second month, a reported £600,000 in fines had been issued – and all from non-residents in non-compliant vehicles. Like in the case of ULEZ, the revenue is used for projects that help to lower air pollution and bring cities closer to their climate targets.

The Glasgow LEZ does not offer a daily charge; rather, non-compliant drivers receive a Penalty Charge Notice worth £60, which is halved to £30 when paid within 14 days.

Birmingham’s Clean Air Zone, the first to start charging car drivers in the UK, only gets approximately 40% of fines paid each month. With 6% of the fines issued being written off, that still leaves a wide gap of uncollected moneys. Local authorities are responsible for the implementation of emissions regulations, including payments.

How to avoid paying the ULEZ daily charge?

If you drive a compliant vehicle, you can rest assured that you won’t get any surprise charges through your postbox. Similarly, if your vehicle is in a category that gives national exemption, you won’t have to worry (although you may have to register with various local authorities in order to avoid being sent erroneous fines).

Nationally-exempt vehicles

  • Disabled tax class or disabled passenger tax class
  • Some agricultural vehicles
  • Registered historic vehicles (from before 1973)
  • Military vehicles
  • Ultra-low emission vehicles
  • Vehicles retrofitted under the Clean Vehicle Retrofit Accreditation Scheme (CVRAS)

However, if you drive a non-compliant vehicle in or near a charging zone such as ULEZ, and want to make sure you can avoid paying daily charges, you have several options:

See if you are eligible for a local scrappage scheme
Have your vehicle retrofitted under the CVRAS
Avoid driving into the charging zones
Sell your vehicle to a verified dealer and buy a compliant one instead

If your non-compliant car isn’t worth much more than a scrap payment, it may be worth your while making use of a local scrappage scheme such as TfL’s one operating for all Greater Londoners, which pays out £2,000 for a non-compliant car.

If you are a business owner or charity with a non-compliant van, it may be even more in your interest to make use of a scrappage or retrofit scheme, as grants can be generous and cover the costs of adopting a compliant (and more modern) vehicle.

Retrofits for normal family cars are generally less cost-effective than the option to sell your car and use the funds to purchase a compliant model.

How to check compliance with ULEZ and other CAZs?

How to check compliance with ULEZ and other CAZs?

Motorway’s free ULEZ Checker helps drivers to plan journeys and running costs: if they are compliant with ULEZ, they’ll also be compliant with almost all other charging zones in the UK.

The UK’s charging zones largely have the same compliance criteria, which is Euro 4 engine rating for petrol engines and Euro 6 for diesel. The rating is assigned to the engine used in your car model, based on how many pollutants are emitted when you drive.

Since 2006, almost all petrol engines have been rated at least Euro 4 standard, and as for diesel, Euro 6 has been the norm since 2016. However, it’s key to double-check your compliance if you’re not sure on your engine’s Euro rating.

The UK now has eight live Clean Air Zones (CAZs) that charge non-compliant private car drivers, and a further four charging vans. If you travel through Aberdeen, Bath, Birmingham, Bradford, Bristol, Dundee, Edinburgh, Glasgow, London, Newcastle, Oxford, or Sheffield, it’s vital to check your compliance in order to avoid a penalty.

Take note that the Scottish LEZs in Aberdeen, Dundee, Edinburgh, and Glasgow do not offer an option to pay a daily charge like the English CAZs; instead, they go straight to penalties of £60. Unless you are OK with a penalty charge, you may wish to avoid driving a non-compliant vehicle through these centres.

There are three simple ways to find out your vehicle’s Euro rating:

  • Enter your reg in a free, online compliance checker such as Motorway’s ULEZ checker
  • Look up your rating inside your V5C logbook
  • Find the specifications for your exact car model and year online
Emissions zones that charge cars in the UK are in Class D, along with Oxford’s ZEZ. Vans are additionally charged in Class C CAZs.

Emissions zones that charge cars in the UK are in Class D, along with Oxford’s ZEZ. Vans are additionally charged in Class C CAZs.

In the run up to the 2035 switchover, the safest way to avoid rising emission charges, changes to tax categories, and other running costs associated with fuel type, is to switch to a hybrid or electric vehicle.

How to sell a non-compliant car

If you’re thinking of selling your car or van due to its compliance status, look no further.

Motorway offers a simple – and completely free – way to sell your car for a great price, whatever the model and whatever the compliance status. If you’re looking to sell a non-compliant vehicle to avoid paying ULEZ or CAZ charges, it’s easy to sell on Motorway to a dealer from elsewhere in the country, where demand for non-compliant models may be higher.

Just enter your reg on the homepage and you’ll be provided with an instant estimated sale price based on up-to-the-minute market data. Motorway will then ask you a few easy questions about your vehicle and guide you through the profiling. If you choose to enter your car into an online daily sale, it’ll be shown to Motorway’s UK-wide network of more than 5,000 verified dealers who will compete to give you their best price.

In as little as 24 hours, you’ll receive your best offer – and, if you choose to go ahead with the sale, your car will be collected for free by the dealer and the money will be quickly and securely transferred to your bank account.