Fuel Prices Skyrocket Costing Motorists Over £800 Per Year
Do you feel motoring costs are becoming very expensive? In particular, are you frustrated by the high UK fuel prices? If you are, this isn’t surprising! According to research by Kwik Fit, in 2018 the average monthly spend on fuel was £67.63, or over £800 a year. This is just one of the main motoring costs which can consume a large amount of your annual income.
Well, we’ve decided to evaluate how fuel prices have changed over the years, as well as provide top tips to help you save money.
Fuel Prices' Trends
Once upon a time, the average ‘pump’ price was plausible at under 100p per litre. But fast-forward to now, and the price is more likely to be around 125p per litre. This is an increase of 25% and according to Gov.uk data, average prices first reached over 100p/litre in November 2007.
So, what caused the extreme rise in ‘pump’ prices?
Both the rise and occasional fall in pump prices, largely relates to the cost of crude oil. As the global demand for the oil increases, the cost also usually rises. This links to the rise in the number of motors on our roads which increases the demand for fuel. Despite the surge in demand for electric vehicles, there are still substantial numbers of vehicles worldwide requiring petrol or diesel fuel.
Below is a graph showing the change in average ‘pump’ prices over the years. We have focused on the prices for each last week in December since 2006.(Source: Figures published by Gov.uk)
This graph shows that largely fuel prices have increased, however in 2008 prices dropped mainly due to the UK recession, causing demand to decrease. Although when we headed out of the recession in 2009, the fuel prices started to steadily rise again. Similarly, in 2015 the UK’s economic growth slowed down and demand for crude oil decreased, resulting in the fall of fuel prices.
As 2019 comes to an end, it seems we are starting to see fuel prices marginally reduce. However, it seems there’s no certainty this reduction will continue and so motorists are just left hoping.
Top Tips: How to Save Fuel
If you’re feeling the strain of high price prices, then this might be of use to you. Below we’ve put together a list of ways you could save money on fuel. We hope you find these tips useful.