Petrol price falls below £1.50 a litre for first time in almost a year

Petrol prices have dropped below £1.50 a litre for the first time since Russia invaded Ukraine, according to the AA.

The motoring group reported that the average price per litre for unleaded fell to 149.74p per litre on Monday, bringing it to its lowest levels since last February and more than 40p per litre down from July’s record high of 191.53p.

The group’s fuel spokesman, Luke Bosdet said the falling prices were a “huge relief” for drivers during the cost of living crisis and said the latest reductions were due to a drop in global oil prices.

According to the AA’s figures, the cost of filling a 55-litre petrol tank is now £82, around £23 less than at July’s record high point. However, Bosdet said that filling stations in towns and cities are charging up to 10p per litre more than those in rural parts of the country and diesel is also still more expensive than last year at an average of 172.21p.

Fuel prices soared throughout the first half of 2022 as Russia’s aggression caused worldwide fears over the supply of oil, driving up the price of fuel. However, experts say that prices have settled as alternatives to Russian oil have been found, helping bring down the price at the pumps.

Bosdet commented: "A 41.8p-a-litre crash in the average pump price of petrol is a huge relief for drivers. But, fuel at 150p a litre is still historically way above the April 2012 record of 142.48p, the previous yardstick of dire pump prices.”

He also warned that they could climb again in March as the temporary fuel duty cut comes to an end. That will add 5p per litre back onto the price of petrol and diesel.

The OBR has predicted that the end of the discount plus an additional increase in line with inflation could push duty up by a total of 12p per litre, although the Treasury insists no decision on fuel duty changes has yet been made and fuel duty has been frozen for the last 12 successive Budgets.