The RAC said a litre of unleaded averaged 134.79p in September(Image: Getty)

Drivers warned of new fuel duty rise after £3.60 petrol price fall

The fall means continuing good news for drivers and the economy with petrol down by 15.5p a litre since May and diesel down by an even better 18.5p

by · BristolLive

Fuel prices fell by 6.5p a litre last month saving drivers £3.60 a tank, according to the RAC. The fall means continuing good news for drivers and the economy with petrol down by 15.5p a litre since May and diesel down by an even better 18.5p.

However, there are fears the falls will create headroom for the Chancellor, Rachel Reeves, to end a 5p a litre freeze on fuel duty as she looks to fill a black hole in the government’s finances. The RAC said a litre of unleaded averaged 134.79p in September, while diesel fell from 146p to 139.5p. This means drivers are now saving £3.60 every time they fill up an average 55-litre family car.

The drop at the pumps was sparked by the continued reduction in the cost of a barrel of oil from $78 at the beginning of September to $72 at the end, although the figure has ticked up in recent days due the crisis in the Middle East.

There are fears the falls will create headroom for the Chancellor, Rachel Reeves, to end a 5p a litre freeze on fuel duty(Image: Getty)

The RAC said: “Since the start of May petrol has tumbled 15.5p from 150.3p a litre, which equates to an £8.50 saving on a complete fill-up, while diesel has come down by a whopping 18.5p from 158p, saving drivers £10 on a full tank.”

Its research showed that drivers who buy their fuel at one of the big four supermarkets are currently saving 3p a litre compared to the UK average. RAC head of policy Simon Williams said: “Drivers will be very pleased to see prices at the pump not only continuing to fall but dropping by 6.5p in just a month as this translates to saving £3.60 on a full tank.

“Since the start of May prices have come down dramatically, with 15.5p being shaved off unleaded and 18.5p off diesel. The reductions have primarily been driven by a drop in the price of oil from above $90 in early April to below $70 briefly in mid-September, supported by a slightly stronger pound which makes wholesale fuel cheaper as it’s traded in dollars.”

The RAC offers a fuel finder feature in the free myRAC app to help drivers shop around for the cheapest fuel. Up to nine searches a day can be made over a two, five or 10-mile radius, with each giving the five cheapest prices.