Understanding Recent Fuel Price Reductions
Drivers should be aware that fuel prices have recently seen a notable decline. According to RAC Fuel Watch, as of last week, the average price for unleaded petrol was 136.15p per litre, reflecting a 5p decrease since early September. Diesel prices have similarly dropped from 145.99p to 140.87p over the same period. These figures indicate that both petrol and diesel are at their lowest levels in nearly three years.
Forecast for Further Price Drops
The trend of decreasing prices is expected to continue. The RAC has predicted that by the end of September, petrol may fall to approximately 132p per litre, while diesel could drop to about 138p. This decrease in prices can be attributed to low global consumer demand and a stronger exchange rate, allowing wholesalers to acquire more fuel for less expense.
Potential Impact of Upcoming Budget Decisions
However, there are concerns regarding the upcoming autumn budget from the Labour government, scheduled for release on October 30th. With discussions around a possible return of the fuel price escalator, motorists must remain vigilant. The Chancellor, Rachael Reeves, has not ruled out increases in fuel taxes, which could adversely affect consumers. As fuel prices fluctuate, motorists are advised to shop around for the best deals, with supermarket prices currently averaging 133.23p for unleaded and 137.69p for diesel.
