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British petrol prices drop to five-year low

Published 06/01/2015, 13:06
© Reuters. A motorist holds a fuel pump at a Gulf petrol station in London
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LONDON (Reuters) - Brit (LONDON:BRIT.L)ish petrol prices have fallen to the lowest level for five years, data published by the government shows, reflecting the steep decline in crude oil prices.

Prices at the petrol pumps have slumped to an average of 111.06 pence per litre this week, the lowest since the week starting Jan. 11, 2010, according to Britain's energy ministry.

Diesel prices have also fallen to multi-year lows at 117.93 pence per litre, a level not seen since Sept. 20, 2010.

A glut in global oil supplies has caused Brent crude prices to more than halve in a little more than six months, with motorists now starting to benefit from the decline.

Around half of the average current petrol price, or 57.95 pence per litre, is a government tax. This explains why petrol prices have not fallen as sharply as crude prices.

Consumer groups have complained the slump in wholesale prices has not been passed on to consumers, with less than half of the drop in crude accounted for by early December, even after exchange rates and taxes were taken into consideration.

© Reuters. A motorist holds a fuel pump at a Gulf petrol station in London

British finance minister George Osborne, gearing up for a May general election, warned petrol retailers in November he would be watching them carefully to ensure savings from falling wholesale prices were passed on to consumers.

(Reporting by Karolin Schaps; Editing by David Goodman and Mark Potter)

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