Mar 10, 2015
Prepare to feel annoyed! The Daily Mail has revealed that the cost of petrol in the UK is almost the lowest in the whole of Europe (second only to Estonia). However, once taxes are added on, petrol in the UK becomes the fifth most expensive in Europe, with only Greece, Holland, Italy and Malta paying more.
According to The Daily Mail report, the cost of petrol before tax in the UK is just 32.4 pence per litre. The majority of the difference between that figure and what you pay at the pump is due to VAT and fuel duty.
Surprisingly, there’s even been talk of fuel duty being raised in the wake of oil price reductions, but hopefully this won’t come to fruition in the run-up to an election. On the contrary, both The RAC and FairFuel UK are currently campaigning for a reduction in fuel duty in advance of the forthcoming UK budget.
The reality of what fuel really costs before taxes are added on make the government’s vocal calls for retailers to pass on oil price savings seem rather hypocritical. As Stephen Glaister, the RAC Foundation’s director rightly says, the person with the “biggest influence” on what we really pay is Chancellor George Osborne. It’s therefore no surprise that he attempts to deflect attention elsewhere.
Mar 5, 2015
There’s some good news today for UK drivers located in certain rural areas. The European Union has confirmed a fuel duty relief scheme that could bring the price of petrol and diesel in these areas down by as much as five pence per litre.
The scheme had already been approved by the European Commission, but this EU “rubber stamping” means that it can now begin from 31st May this year. This was confirmed today by a BBC report.
The idea behind the initiative is to offer relief to fuel retailers in outlying areas to help cover the transportation costs to forecourts. In turn, this should mean that there are fewer disparities between rural and urban petrol prices. The scheme is, in fact, already in place for certain locations, such as the Isles of Scilly and the Hebrides, but will be extended to cover a number of new areas.
These include a range of regions in the Scottish Highlands, and some select areas in Cumbria, Devon and Yorkshire.
Rural petrol stations wishing to benefit from the scheme will be able to apply for registration from the beginning of next month. Hopefully this move will go some way to readdressing the sense of unfairness felt by drivers in these areas.
Feb 27, 2015
Against a backdrop of a small upward trend in petrol prices recently, the AA have stepped out and said that motorists are suffering from the effects of “oil company greed.”
In a report in The Belfast Telegraph, AA president Edmund King has once again criticised the fact that garages tend to quickly raise prices when oil costs move upwards, but are far slower to act when the oil price changes in the opposite direction. This is a phenomenon widely referred to as the “rocket and feather effect.”
This time, King has singled out mainstream garages and pitted them against the supermarkets, saying that the supermarkets brought prices down more quickly when oil prices fell and are now “reluctant” to raise them in the wake of increases.
This certainly rings true based on some ews we announced yesterday, referring to the fact that Sainsbury’s is launching a voucher promotion that, at least temporarily, will allow many motorists to purchase petrol at less then one Pound per litre, so long as they do a grocery shop in a Sainsbury’s store worth at least £30.
The RAC seem to agree with the AA, with spokesman Simon Williams saying that retailers have “quietly passed on” their own price increases. However, with the supermarkets piling the pressure on, other garages will surely have to do something to compete, or they will risk seeing their forecourts deserted while motorists queue at the supermarkets!
Feb 18, 2015
If you have a Shell petrol station near you, the chances are you will have a whole new fuel payment option available to you later this year.
Based on a report in The Telegraph, the new system will use the PayPal payment app, and will be first rolled out to members of Shell’s “Driver’s Club” scheme from April this year. By the end of the year, paying by mobile should be an option to all customers at “the majority” of Shell’s 1000 forecourts, via the PayPal app or Shell’s own “Motorist” app.
The idea is that the system will reduce queues by allowing customers to pay without having to go into the petrol station (unless, of course, they wish to buy additional items).
One question that does occur, and one that’s not mentioned in the report, is that petrol stations generally request that customers don’t use their mobile phones on the forecourt for safety reasons. Quite how this will be handled remains to be seen!
Payment via PayPal’s app is already available at over 8000 shops and restaurants in the UK, including such chains as Gourmet Burger Kitchen and Wagamama. Orders are paid for “up front” and then a receipt is emailed when the transaction is complete.
Time will tell whether this modern payment method will catch on, but in a society where people do more and more with their smartphones, there are sure to be plenty of tech enthusiasts keen to try it out.
Feb 16, 2015
Last week, we talked about how UK petrol prices had begun to creep upwards again the wake of a rise in the wholesale oil price. Subsequent news stories towards the end of the week suggested these rises were only temporary, but there’s another facet to the story that’s begun to develop as we begin another week.
Today, various news outlets including The Grimsby Telegraph, have reported on how campaigning group FairFuelUK have called for an “OffPump” inquiry into the “rocket and feather” effect on petrol prices when the oil prices changes.
The report states that at certain garages, the small rise in the oil price resulted in an immediate “rocket like” rise at the pumps, to the tune of as much as four pence per litre. FairFuel UK want to know why such drastic rises happen as soon as the oil prices goes up, while price reductions are so much slower to appear when the oil price goes down.
It’s not the first time there’s been calls for greater transparency into a pricing phenomenon that FairFuel UK describe as “pure monetary greed.” The group’s lead campaigner claims that the government are continually “ducking” calls to investigate.
Apparently the government’s Treasury Minister supports this call to action. Time will tell whether anything comes to fruition.
IMAGE CREDIT: Wikimedia Commons
Feb 5, 2015
For many years, diesel cars have been seen by many as more economical and more environmentally friendly than their petrol equivalents.
Much of the reason for the latter is that governments have chosen to focus on CO2 emissions when determining car tax rates, and this had lead to many people choosing diesel vehicles as the most wallet-friendly choice.
However, in recent times, diesel cars have suffered something of a backlash. While CO2 emissions may be lower in diesels, other emissions that damage the environment, such as particulates and nitrogen, are in fact much higher in these vehicles.
According to a report on Gas 2, Barry Gardiner, the UK’s Shadow Environment Minister, has said that the UK’s past approach of basing tax on CO2 emissions alone was “the wrong decision.” He’s even gone as far as saying that the outcome of the decision has caused a “massive problem for public health.”
Over the Channel in France, there’s been a similar U-turn on diesel. The French prime minister has made a similar pronouncement that their preference for diesel vehicles was “a mistake.”
Back in July last year, we reported on how London mayor Boris Johnson had put forward a proposal to charge diesel drivers a “pollution charge” in central London. With governments in more than one country now seeming to come around to the idea that diesels are more polluting than petrol cars, one can only assume movements like this will continue to gain traction.
It’s very clear who all this is unfair on: the many motorists who bought diesel cars because they were conditioned to think they were the more sensible and responsible option. If they are going to be encouraged to swap their vehicles, one must hope that some sensible incentives appear.
Jan 28, 2015
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.
Jan 21, 2015
Last week, we talked about a garage in Walsall that had been widely reported as the first in the country to drop the price of unleaded fuel below the one Pound mark, specifically to 99.7 pence per litre.
As we predicted at the time, petrol for under a Pound has begun to spread – and there’s some jealousy starting to arise amongst the regions!
A report in The Bristol Post refers to a garage now selling petrol for 99.7 pence per litre in Swindon, and three matching the price in the Birmingham area (presumably including the service station in Walsall). The newspaper complains that Swindon drivers are getting the cheap fuel when those in nearby Bristol are not.
However, it seems that the jealousy may soon pass. A spokesman for The RAC is quoted as saying that “we are surely only weeks away from the milestone price of £1 a litre being a common sight.”
This corresponds with the view The RAC have had for some time and a view that’s rather more optimistic than that of The AA. Drivers across the country more than likely hope that it’s The RAC who are correct.
Meanwhile, you can find the cheapest pumps across the country by using our free tool.
Jan 13, 2015
For some time now, we’ve been debating whether petrol would drop below the one pound per litre mark. For some time, The RAC have seem convinced it would happen, while The AA have remained less sure.
Well now, as we predicted at the end of last week, the optimists were right. Unleaded petrol has finally dropped below one pound at at least one garage, and this “sub-one-pound” petrol had caused a flood of news stories.
The Mirror, amongst other news outlets, have reported on an independent petrol station in Walsall (Birmingham) offering unleaded for 99.7 pence per litre, resulting in the local supermarkets quickly dropping their prices to around 103 pence per litre in an attempt to compete.
It’s now reasonable to expect that other garages will follow suit, and that 99p petrol will become more widespread as the week progresses.
Interestingly, The RAC and The AA are still very much at odds on what this means for the future. Having been proved right about the price drop, The RAC are now bullish, and quoted as saying that £1 per litre petrol will soon be a “common sight” across the country. The AA, in something of a face-saving move, have dismissed the cheap petrol as a “publicity stunt” according to to the Express and Star, maintaining that the reductions “may not last.”
We will obviously follow developments very closely, and like UK motorists will hope the the optimistic RAC are correct in this case!
IMAGE CREDIT: Geograph
Jan 5, 2015
Several times over recent months, we’ve speculated on whether petrol prices will drop as low as the “magic” one pound per litre.
Experts have been divided on the issue, with The RAC typically seeming far more optimistic than The AA or the Petrol Retailers Association.
However, reality seems to be beginning to favour the optimists, with a report today in The Independent suggesting that a fall to £1 per litre could even happen before the end of January. Some analysts think that filling up may soon cost as much as £8 less than it did at the start of the year.
As always, there are some dissenting voices, and once again it’s the AA showing pessimism. Their spokesperson is quoted as saying that global oil prices need to fall by another third before the £1 litre will be achieved, and that weak Sterling makes it even less likely.
Even so, with widespread price wars continuing, and some supermarkets said to be treating fuel as a “loss leader,” the £1 litre could soon become a reality. The Metro newspaper is today saying the same thing too. Whether it happens or not, UK motorists are certainly being given some lofty expectations!
