The battle of vehicle fuel price has begun; it first started with Morrisons who lowered their petrol prices to under £1 per litre just before Christmas. Soon, Tesco, Asda and Sainsbury’s were following suit.
As of January 4th, the price of diesel per litre dropped to under £1, as Asda, Morrisons and Tesco all set their prices to 99.7p. The reason behind these price drops were prompted by the drop in the price of crude oil.
RAC spokesman Pete Williams said: ‘The lion’s share of the price we pay at the pump, around 75 per cent, goes to the Treasury in duty and VAT. The rest of the price is production, refinery costs, distribution and the fuel retailers’ margins. This means that there is a limit to how low we will see the price of diesel and petrol go, but prices could well continue to fall and a pump price of 90p a litre is not that far-fetched.’
Both diesel and petrol prices have fallen to their lowest prices in six years due to a number of factors, and many motoring organisations forecast it could drop even lower this year. Good news for all vehicle drivers!
‘information originally sourced from the RAC http://www.rac.co.uk/advice/fuel-prices-explained ’
Categories: Industry News