Uk diesel and petrol prices_ supermarkets readying for a fuel price war _ auto express
Supermarket forecourts are set to become the battlefield in a fuel price war after Asda, Morrisons and Tesco announced they would cut diesel and petrol prices, a move expected to save drivers ?1 per fill-up.
Their announcements end nearly four months of rising fuel prices, which resulted in families with two cars spending ?40 more a month on fuel than they did this time last year.
Asda announced that from Tuesday onwards, motorists will pay no more than 114.7pence per litre for unleaded and 116.7ppl for diesel at the retailer’s 301 forecourts.
Morrisons and Tesco soon announced similar cuts, with both chains slashing their fuel prices by 2 pence per litre. Gas cost calculator uk According to RAC fuel spokesman Simon Williams, there is “no doubt other retailers will follow suit and we will see prices on every forecourt come down.”
The UK’s average petrol price currently sits at around 120.1ppl while a litre of diesel will cost motorists on average 122.3ppl. Average cost of gasoline in europe According to the AA Fuel Price Report, a family with two petrol cars is spending around ?240.22 on petrol each month, compared to ?203.90 in February 2016.
The recent months of rising fuel prices are linked to increases in global oil prices after the Organisation for Petroleum Exporting Countries (OPEC) finally cut back production, thus restricting supply and increasing price.
OPEC had previously kept supply artificially high, attempting to flood the market with cheap oil and squeeze out smaller rivals unable to compete with the low prices.
Average monthly gas and electric bill 4 bed house The falling value of the Pound in previous months has also helped push up the price of fuel on forecourts as oil prices are measured in dollars. Estimate gas cost for trip mapquest Varying fuel prices across the UK cost motorists ?220 a year
Exclusive figures obtained by Auto Express show that regional variations in fuel prices across the UK across the whole year have resulted in some drivers spending over ?220 more than others when refuelling their car.
Despite a seventh consecutive fuel duty freeze in November by the Government, pump prices across the country are far from balanced, as shown by the figures obtained from comparison site PetrolPrices.com.
They varied by more than 20 pence per litre from the cheapest areas to the priciest. How much gas will cost for a trip In the past 12 months, motorists at two locations in Argyll, Scotland have forked out the most for fuel, with average prices hitting 125.9ppl for petrol and 125.1ppl for diesel. Calculate cost of gas to drive somewhere That compares with just 103.9ppl for petrol and 104.5ppl for diesel in Tilbury, Essex.
It means a driver covering the national average of 9,101 miles a year at 40 miles per gallon in Argyll would have spent over ?1,300 in 2016 to fill up their petrol car.
Yet the same driver in Tilbury, Essex, would have forked out just ?1,074. Average gas bill in texas It’s not a simple north/south divide that’s causing price discrepancies, though. Estimate monthly gas costs PetrolPrices.com managing director Jason Lloyd said: “Our results show that when it comes to petrol, although Scotland has some of the most expensive prices, it also has some of the cheapest.”
Instead, pump prices often reflect both how affluent an area is, as well as how costly it is for forecourts to transport fuel to their pumps. Gas prices merrillville in Lloyd added: “Stations tend to charge more where average earnings are higher. Average cost of gas in us 2012 Transport costs can also play a role; how close a refinery is to an area can sometimes make a difference.”
A high concentration of fuel stations in an area will usually result in lower prices at the pumps as forecourts battle it out to entice drivers to spend with them.
Despite the uneven prices that benefit some over others, the overall trend for 2016 showed average fuel prices rising – with charges at petrol pumps increasing from 102ppl in January to 115ppl on average in December, and diesel surging from 102ppl at the start of the year to 117ppl in December.
Outside influences like Brexit were partly to blame and Lloyd predicts prices will continue to rise in 2017. Gas cost road trip calculator He explained: “This upward trend is likely to continue, although it will fluctuate based around key global events. Calculate how much gas it will cost “We are unlikely to see the extremes of pricing near the 145ppl levels of 2012 with the oil strikes, but we do expect prices to reach between 120 and 130ppl in 2017.” Five highest prices
The price of fuel can be divided into three sections; the taxes imposed by the Government, the costs of drilling, refining and transporting, and the profit margins for the fuel companies.
For petrol, diesel and bioethanols, the Government gets around 65 per cent of the overall cost through fuel duty and value added tax (VAT). Gas fuel cost calculator The fuel duty represents the fixed price of fuel – it stays the same regardless how much overall oil prices fluctuate – and is currently frozen at least until the next UK budget on 20 February 2017. Costco gas hours tucson az Currently, the Treasury adds 57.95 pence to each litre of fuel through fuel duty, and another 20 per cent through VAT. Trip cost gas How much you pay in VAT depends on how much fuel you purchase.
The second biggest chunk comes from the wholesale costs of the fuel itself. How much gas to drive 2000 miles The wholesale cost is a combination of currency exchange rates, global oil prices, and even domestic supply and demand.
Finally, the smallest share of what motorists have to pay for fuel comes from the filling stations themselves. Cost of diesel fuel in california A typical fuel station profits around 2p-5p per litre, but tough competition can drive this down further. How much gas would it cost to drive Supermarkets increasingly use fuel prices as a loss leader to tempt customers in. Trip cost calculator gas and tolls Why is petrol and diesel so expensive?
It seems bizarre that the digits on forecourt price boards have barely changed when global oil indexes have plummeted from $100 per barrel of oil in 2014 to below $40 in 2016.
Although many motorists think petrol stations are patting themselves on the backs and reaping in massive profits, the reality is that despite global oil prices tumbling, an average forecourt only makes two to five pence of profit per litre of fuel sold. Gas mileage fuel cost calculator The real reason why prices remain frozen is because of the costs the Government has attached to the price of fuel.
The Government’s share of taxes represents around two-thirds of the entire cost of fuel – and because the fuel duty is a fixed cost, it remains unchanged by global oil prices.
The drop in oil prices thus affects only around a third of the overall price of petrol and diesel, which explains why huge slumps in global oil indexes translate to only small savings at the pumps. How much will gas and electric cost me Why are global oil prices falling?
Global oil indexes are the current seismometers of a power struggle between the cartel-like Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC countries that have increased their own domestic production through alternative means of drilling for oil.
Hydraulic fracturing or ‘fracking’ – the process of pumping water and chemicals underground to break apart the rock and release available oil and gas – has proven hugely successful in the North America. Average cost of a gallon of gas in 2008 States like North Dakota have filled up with oil companies looking to cash in, causing a headache for the likes of Saudi Arabia and the other Middle Eastern countries in OPEC. How much would gas cost Add in more oil coming from countries like Russia, Nigeria, and Venezuela, and it’s easy see how the increasingly crowded market could force prices down.
Keen not to lose top dog status in the global oil supply chain, OPEC responded by maintaining its production levels, thus supplying the market with more oil than is demanded. Gas vs electric stove cost ontario This is what is partially driving down the price of oil – and it is being done to make the means of oil extraction prohibitively expensive and to push smaller oil producers out of the market.
However, recently OPEC announced it would cut back production – suggesting the falling oil prices will come to an end. How much gas for my trip to florida Oil prices rising by 11.75 per cent from between November and December 2016. Average gas price per month uk Why does my local supermarket offer cheaper fuel than an independent forecourt?
Supermarket forecourts usually offer the cheapest fuel prices and this is because of the market power supermarkets hold. Average gas prices usa today Companies like Asda, Tesco, Sainsbury’s and Morrisons are all in competition with one another, so they keep fuel prices as low as possible hoping that when motorists come to fill their tank, they might do their weekly grocery shopping, too.
However, the AA’s Fuel Price Report found that supermarket prices are getting closer and closer to prices on independent forecourts. Gas prices on my trip The price gap between the Big-Four (Tesco, Asda, Sainsbury’s and Morrisons) and non-supermarket rivals has fallen below 3ppl for the first time in 12 months.
There are persistent rumours that supermarket fuel contains fewer additives and is of lesser quality than fuel from traditional forecourts, but there’s little hard evidence of this. Gas prices canada 2014 All fuel sold in the UK has to abide by the standards set in the Motor Fuel Regulation. How to estimate gas cost per month Why is diesel more expensive than petrol?
Although diesel and petrol are taxed the same by the Treasury, historically diesel has been more expensive than petrol, as domestic refineries have struggled to meet demand. Fuel cost trip calculator uk This has forced the UK to import diesel from other countries at a greater rate than petrol.
However, the influx of cheap diesel from countries like Saudi Arabia has turned the tide, swinging diesel wholesale prices closer to that of petrol, and bringing the pump price down with it.
• Best electric cars to buy now Why is fuel so expensive on motorways?
Recent figures from the RAC suggest motorists topping up at a motorway fuel station pay up to 15 pence per litre more than elsewhere. Estimate gas cost trip mapquest Motorway fuel stations argue the reason their prices are higher is that many of them are open 24 hours a day and offer more services than a regular forecourt. Calculate cost of gas per trip Motorway fuel stations also pay high rent prices for the buildings they operate.
In more remote areas, fuel is often more expensive because of the higher transport and supply costs, but according to RAC fuel spokesman Simon Williams, this doesn’t apply to motorway stations: “We can see no reason why motorway fuel should be so much more expensive. Price of gas geyser in nepal In fact, arguably it is much easier from a delivery point of view than it is getting fuel to urban filling stations.”
A new pilot scheme by the UK Government is installing electronic boards on the M5 between Bristol and Exeter that display motorway fuel prices. How much does a gallon of gas cost in 2015 Similar systems can be found in countries like France, and if the trial is deemed successful, more motorways across the UK will see electronic signs posting fuel prices. Average cost of gas electric and water per month This would provide some much needed price transparency for motorway drivers.
• How to test cars for real world mpg What is the rural fuel rebate?
The rural fuel rebate is a scheme operated by the UK Government that cuts 5 pence per litre from fuel prices in 17 of the country’s most rural areas. How much does gas heat cost per month It was approved by the European Union and now benefits over 125,000 people living in areas like the Scottish Highlands and the Lake District.
These areas are often harder to reach, forcing forecourt to charge higher prices to account for the higher cost of supply. How much gas will it cost me for my trip The rural fuel rebate aims to let residents and those travelling in these areas to benefit from cheaper fuel.
What’s your view on fuel prices in the UK? Do we pay too much for our petrol and diesel? What would you do about it? Join the debate in our comments section below…
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