January fuel price update

Weekly cost of family petrol goes up nearly £12.50 in one year

19 January 2010

Weekly cost of family petrol goes up nearly &12.50 in one year

An average UK petrol car now costs 89p a day more in fuel compared to the same time last year, the latest mid-monthly AA Fuel Price Report reveals. For a family with two, the 25p difference between what they pay now for a litre of petrol and what they paid in January 2009 leaves a £12.46 hole in their weekly budget.

A litre of petrol now costs on average 111.80p compared to 86.63 at the same last year. Diesel, at 113.65p, is almost 15p a litre more expensive than a year ago (98.68p). Between mid December and mid January, the average petrol price has risen 3.48p and diesel 3.79p.

Since mid-December, average prices dipped to a low of 107.66p for petrol and 109.3 for diesel on December 28. The return to 17.5% VAT on 1 January lifted petrol to 109.88 and diesel to 111.52. Since then a surge in the value of oil and increased wholesale fuel costs have lifted prices by around 2p a litre in 10 days.

"Higher fuel prices in 2010, caused by above-inflation duty increases and oil price volatility will continue to destabilise the economic recovery and family budgets. With the election coming, drivers will be listening carefully to what the political parties propose," says Edmund King, the AA's president.

Once again, Shell and Jet are under-cutting the more expensive supermarkets on the average cost of petrol around the country, reflecting the lack of competitive pricing in many UK towns, particularly in the South.

Asda remains the cheapest, on average nearly 1.5p a litre cheaper than its nearest rival. A similar pattern has emerged with average diesel prices.

Yorkshire and Humberside stand out as the cheapest region for petrol at 110.7p a litre, while London and East Anglia share the most expensive spot at 112.6p. The average cost of diesel in Northern Ireland at 114.4p a litre is nearly two pence higher than in the cheapest region Yorkshire and Humberside at 112.5.

View the full AA Fuel Price Report »

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19 January 2010
(Price data provided by Experian Catalist)