Fuel prices across the UK are currently at their lowest rate in nearly three years, offering some welcome relief from the pressures of rising living costs. Whether you’re fuelling up with unleaded petrol or diesel, you're probably seeing considerable savings at the pumps.
The main reasons behind this dramatic drop are due to two reasons:
- Decrease in global oil demand
- The strength of the British pound
The price of oil has fallen to $73 per barrel due to weaker global demand. This is combined with how strong the pound is at the moment, has improved the value UK fuel retailers receive when purchasing fuel on the global market, as oil is priced in US dollars. These two factors have resulted in a notable decrease at UK fuel pumps.
As of September 2024, the average price of unleaded petrol is at 136.2p per litre, down from 142.9p in mid-August, while diesel prices have dropped from 147.7p to 140.9p, according to the RAC. Meaning if you were filling up a standard 55-litre family car, it is now about £4 cheaper than it was just a month ago.
And the savings might not stop there. According to the RAC, petrol prices could drop further to as low as 132p per litre, with diesel potentially dipping to 138p by the end of September.
While the price drop is already benefiting drivers, here are some ways to stretch your savings even further:
- Time Your Fill-Ups: Prices vary throughout the week, so filling up during quieter periods, such as early mornings or mid-week, can help you get better deals.
- Use Price Comparison Tools: Apps like PetrolPrices and the RAC Fuel Watch website can help you find the cheapest petrol stations in your area.
- Combine Trips: Reducing the number of trips you take and combining errands can save both time and fuel, which adds up over time.
- Drive Efficiently: Simple measures like keeping tyres properly inflated and avoiding heavy acceleration can help you get more miles out of each tank.
As prices for traditional fuels fluctuate, the question arises: Leasing an Electric Vehicle - Is now the right time? While petrol and diesel prices are currently low, more drivers are starting to explore the Benefits of an Electric Car and the Benefits of a Hybrid Car. Lower running costs, government incentives, and a move towards sustainability are all driving factors in the increasing popularity of EVs. However, for those sticking with petrol and diesel, now is a prime opportunity to save on fuel.
While the future of fuel prices remains uncertain, it is largely dependent on fluctuations in global oil markets and the strength of the pound. UK drivers can expect to continue enjoying lower prices for at least the coming weeks. According to industry experts, this is the best opportunity in recent years to fill up for less.
With petrol and diesel prices plummeting across the UK, now is the time for drivers to take advantage of the savings. Whether you're heading out on a road trip or simply commuting to work, every little bit helps when it comes to keeping your vehicle running costs down.
For more information, why not check out our How to Save Money on Fuel for Your Vehicle blog? We also produce a range of weekly blogs on various topics, which can be found in the blog section of our website.
Nationwide Vehicle Contracts are one of the UK's leading car leasing brokers and offers a range of leasing deals to suit every need. To find out more, check out our comprehensive car leasing guides or call one of our experts on 0345 811 9595.
