Petrol prices fall – but further price cuts unlikely say the AA

But the AA has warned that a further dip in prices is unlikely.

Average petrol prices in the UK fell 5.49p a litre between mid September and mid-October –the biggest monthly fall since the 11.5p petrol price collapse in November 2008, the AA said.

Petrol is now averaging 132.16p a litre while diesel has dipped from 142.50p a litre to 139.12p.

The AA said the reductions have cut £2.74 off the cost of refuelling a small petrol car and £3.84 off the bill for a Ford Mondeo-sized petrol vehicle. A family with two petrol cars will have seen the monthly fuel bill fall by £10.

With the UK consuming typically 1.55 billion litres of petrol a month, the 5.48p average price reduction has diverted about £2.83m a day from the pump to the high street and other consumer spending.

Comparing average regional pump prices for mid-October, Northern Ireland is most expensive for petrol at 132.9p a litre – despite seeing the biggest fall over the past month. London, the north of England, and Yorkshire and Humberside are jointly the cheapest areas at 131.9p.

Despite a 3.3p-a-litre reduction since mid-September, Scotland remains most expensive for diesel at 140.1p a litre while London is cheapest at 138.6p. For the past month, the wholesale price of petrol has been largely at the same level it was during December.

Comment: Page 12.