Petrol prices have now been falling steadily for months, and you’ve probably noticed the positive financial impact already – whether than means a little more money in your pocket, or a bit longer between trips to your local petrol station.
Extrapolated over a year, the savings are likely to prove even more impressive. In fact, according to a study reported on yesterday in The Telegraph, the real-life savings actually have an equivalence to a one-percent cut in the nation’s rate of income tax.
Obviously, individual circumstances will dictate the accuracy of this comparison. Those who only rarely drive won’t find as much extra cash going spare as those who cover thousands of miles. However, the study says that for some, the savings could add up to an impressive annual figure of £770.
All in all, based on current prices (which could yet go even lower), the country is expected to save £5.3 Billion pounds this year due to cheaper fuel. This is on top of a similar windfall of just over £500 Million due to lower predicted energy bills.
The £770 annual savings figure refers to a 25 miles per gallon vehicle, driven for 20,000 miles during the year. For most, the savings will be a little more modest, probably around £146 on average. But let’s not forget that if prices continue to fall, the savings will increase in tandem.