28th August 2015

Time to pay less at the pumps

We could soon be paying around £1 per litre – or even less – at the pumps, as the price of crude oil is set to keep falling. After a steady rise during the first half of the year, fuel prices have dropped week on week since July, giving taxi drivers a much-needed boost in savings.

The effect of falling fuel prices has been most noticeable on the supermarket forecourts, with Sainsbury’s, Tesco and Asda slashing their prices over the course of the summer.

Then and Now

This time last year, one litre of Unleaded petrol or Diesel went for averages of 129p and 133p at the supermarkets. Today, both figures sit under 110p leading analysts to predict that, if the trend continues, we’ll soon see fuel prices under the £1 mark for the first time since 2009.

Historically, Diesel costs have always been considerably higher than petrol, reaching a record high of 148 pence per litre (ppl) in 2012. However, for the first time in 14 years, Diesel has become cheaper than petrol. According to a report from the AA, Diesel has fallen 7.4 ppl from July to August, compared to a price drop of 2.4 ppl in Unleaded fuel.

Continuing to fall

After sharp rises in fuel costs over the years, many taxi drivers have ended up feeling the pinch. At the height of fuel price rises in 2012/13, many found it difficult just to keep the tank filled, with some even ending up feeling pushed out of their jobs as a result.

The current trend of falling fuel prices is expected to continue over the next year, and some forecasts are even predicting costs to carry on falling through to 2018. However long it lasts, we can all look forward to making considerable savings on fuel in the near future.

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