Plummeting petrol sales fuelled by record prices at pump, says AA

Service stations sold 835 million fewer litres of petrol and 247 million fewer litres of diesel in January to March 2011 than in the same period three years earlier.

The AA said the 15.2 per cent dip in petrol sales and the six per cent fall in diesel sales compared with 2008 was caused by austerity and the record fuel prices, which saw petrol increase by 7.94p a litre and diesel go up by 10.51p a litre in the first three months of this year.

It added that the drop in sales deprived the Treasury of more than £637m in tax during the first three months of 2011.

AA president Edmund King said: “The full impact of higher VAT, unbridled stock market speculation and a weaker pound on fuel prices and drivers’ ability to afford them have been laid bare. The first three months of this year saw the equivalent of 13.5 days of UK petrol sales wiped out – good for the environment but appalling for families, business, rural communities and the Treasury.”

He added: “Our study shows the real impact of record pump prices. Petrol and diesel prices continued to set new records up until the second week of May, adding a further 4.3p a litre to the cost of petrol and 3.3p to diesel.”