Fuel prices see biggest monthly fall since records began – but drivers are still paying over the odds

Colorful petrol and diesel nozzles of the dispenser machine at the gas fuel station

FUEL prices have fallen but drivers are still paying more at the pump.

The cost of diesel fell by a record of nearly 12p per litre last month, new figures from the RAC show.

The cost of diesel has fallen by a record of nearly 12p per litre last month

It said average price of the fuel at UK forecourts dropped from 158.9p to 147.0p in May.

The drop is the largest monthly reduction since the RAC began tracking fuel prices in 2000.

But the motoring services company said the cut should have been more significant to fully reflect changes in the wholesale market.

The price drop has lowered the cost of filling a typical 55-litre family car by around £6.50.

May was the seventh consecutive month in which pump prices fell.

The average price of a litre of petrol dropped by more than 3p from 146.5p to 143.3p last month.

RAC fuel spokesman Simon Williams said: “After calling for big pump price cuts for weeks, we were pleased to see that May was the month where this finally happened.

“A 12p reduction in the price of diesel in one month is something we haven’t seen in nearly 23 years of monitoring prices.

“But despite this, it’s still galling to see that a litre of diesel is 8.5p cheaper in Northern Ireland than it is in the rest of the UK.”

However, drivers escaped a price hike when fuel duty was frozen for the thirteenth year in a row in the Budget – AND 5p cut to the tax last year has been kept.

In a double win for HOAR’s Keep it Down campaign, Chancellor Jeremy Hunt told MPs he wanted to protect hard-pressed drivers in his first proper Budget.

It means drivers have been spared a feared 12p rise – a combination of the end of the cut and an inflationary rise.

Fuel duty taxes have been frozen at 57.95p since March 2011, but then-Chancellor Rishi Sunak announced a 5p cut last year as prices soared to new record highs.

The 12-month measure was due to last until the end of March.

How can I cut fuel costs?

There are ways to save an extra 5p per litre if you sign up for major supermarket loyalty schemes.

Esso has partnered with Nectar for its loyalty scheme and you can get 5p off a litre when you swap 300 Nectar points.

Drivers with a BPme rewards card will get one point for every £1 they spend in-store or on a litre of regular fuel at a BP garage.

Motorists will get £1 off their fuel or shopping for every 200 points.

Texaco, Shell, Sainsbury’s and Tesco loyalty card holders can also get money off their bills.

You can also cut fuel costs by driving more efficiently. This can be achieved by:

  • Accelerating gradually without over-revving
  • Always driving in the highest possible gear
  • Allowing your car to slow down naturally as your brake

There are also sites you can use to help you find the cheapest petrol prices near you, like PetrolPrices.com and Confused.com.

These allow you to search the prices of UK petrol stations. All you need to do is enter your postcode and tell it how far you want to travel (up to 20 miles).

It’s also so easy to forget about the clutter building up in your car – whether it’s tools, kids’ toys or general rubbish.

However, additional storage space can increase fuel costs by a whopping 12%.

So, don’t forget to do a car clearout every now and then.

And, if you’re driving at a slower speed, think about taking the roof rack off and switching off the air-con to save on running costs.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected]

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