Petrol prices: How to find cheapest fuel in your area as fuel costs soar
Petrol prices: Diesel drivers are being ‘ripped off’ says Fair Fuel UK
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
UK petrol prices jumped to a record high over the bank holiday weekend, boosting an already perilous trend for British consumers. Petrol is now worth 180.73p per litre, and diesel 186.57p, up from 170.35p and 181.35p respectively at the end of May. As Britons tackle the litany of other troubles spawned by the cost of living crisis, many will be desperately looking for a deal on their fuel.
How do you find the cheapest petrol in your area?
According to Confused.com, diesel and petrol prices vary significantly across the country.
The highest petrol rate in the UK detected this week was 199.9p per litre on June 6, with diesel passing the £2 per litre mark at £211.8p.
The lowest prices the site found were nearly £1 less at 119.9p per litre for petrol and 173.9p for diesel.
The vast difference between the two price points provided an average of 177.5p for petrol and 185.3p for diesel.
Petrol prices in the UK hinge on several factors, including:
- Wholesale fuel costs
- Distribution costs
- Retail margin
- Fuel duty rates
Supply, demand and competition cause the first few factors to vary across the country, meaning some people will need to hunt for the best prices.
You can find out where the cheapest fuel is in your area using Confused.com’s handy tool.
Visit the website here, click on your fuel of choice and put in your postcode.
There are some other rules of thumb to follow when looking for petrol as well. Read on for top tips.
Buy petrol in a competitive area
Competition is the most significant driver of fuel prices, and areas with more fuel pumps generally charge less for petrol.
Fewer stations mean less incentive to produce competitive prices, meaning they are higher on average, while areas with more pumps will want to beat their competition by offering enticing, cheaper pricing.
In Towcester, Northamptonshire, a litre of petrol will set people back roughly 179.6p per litre.
Inner-city London, which is teeming with stations, is more than six pence cheaper at 173.5p per litre.
While the variation appears comparatively negligible, it will make a difference for car owners in the long run.
Avoid expensive regions
Prices often vary locally but are also at the mercy of regional differences.
Similarly to the rule of competition, pumps in more distant, less populated areas tend to charge more.
They need to make up for fewer customers and ultimately charge more by the litre to make up for upfront costs.
The distance between refineries and stations matters in the same regard, as they can offer more competitive prices due to lower upfront transportation costs.
In April, car insurance firm Admiral released a list of areas where petrol prices were highest.
- East Sussex
Source: Read Full Article