Sunday, March 28, 2010

Pump Prices High Despite Cost Drop



Average petrol prices stayed around the 112p a litre mark for the last month despite a 2p fall in the wholesale cost, a leading car insurance and breakdown recovery company has said. Diesel prices have also stagnated at around 113.84p a litre.

The company said some supermarkets had been slow to lower prices but some were now offering a litre of petrol at a price below 110p. However, some motorway service areas were charging almost 120p a litre.

The cheapest petrol to be found at present is in Yorkshire and Humberside where it costs an average of 110.9p a litre. The most expensive is in Northern Ireland at an average of 113.5p a litre.

These two areas also have the cheapest and dearest diesel, with the average in Yorkshire and Humberside being 112.8p a litre and the Northern Ireland average being 114.9p a litre.

A spokesperson for the car insurance and breakdown recovery company said: "Time will tell the extent to which the general reputation of supermarkets as the place for cheapest fuel has been dented in recent weeks.

"We know from our research that £1.10 a litre is when driver tolerance of higher fuel prices begins to evaporate, and £1.12 may have been sufficient for many car owners to reconsider who they buy their fuel from."

He went on: "We fear that the recent fall in the wholesale price is only a brief respite. Inflation-linked fuel tax increases are due in April and stock market speculators in banks bailed out by the taxpayer are once again fixing their sights on 100 dollars a barrel for oil.

"With the research showing that more than 60% of drivers are cutting back on car use or other consumer spending because of high fuel prices, cash-tight motorists will become increasingly choosy as to where they buy their fuel."

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