As fuel prices shot up motorists cut back on road trips so they could fill up less often and put smaller amounts of petrol into their tanks. Petrol prices soared following Russia’s invasion of Ukraine, contributing to the rising cost of living crisis facing the UK.
That sparked an initial rush for fuel, with many filling stations witnessing queues of drivers waiting to fill up their tanks as customers anticipated price increases and possible shortages. Government figures show that sales of petrol went up by 12% during the week ending February 27, compared to the previous week, and were 41% higher than in the same period of 2021. At the same time, the average customer put 6% more fuel into their tank per transaction compared to the previous year.
Over the next few weeks, sales remained high at around 36% above the previous year, while a regular survey conducted by the Office for National Statistics (ONS) shows the number of people experiencing fuel shortages increased from 8% to 20% within two weeks in April. But since then, as prices increased and consumers have faced other pressures brought by the cost of living crisis, petrol sales have slumped.
The price of petrol peaked on July 3, when it was 48% higher than the same period the previous year. And by the end of July, petrol sales had dropped to 19% below what they were in 2021. After the initial rush to fill up petrol tanks following the invasion, motorists are now being a lot more prudent when they do visit the forecourt. Analysis of petrol station transactions shows motorists are spending 11% less per sale than they did last year.
That reflects an ONS survey in August that showed 44% of adults who have seen their daily costs increase have cut back on non-essential journeys in their car. Meanwhile, the latest data from the Department for Business, Energy and Industrial Strategy (BEIS) shows that as of August 29, petrol prices were at an average of 170.12p per litre for unleaded, and 183.20p for diesel; down from a peak of 191.55p and 199.22p in July.
But separate analysis of average prices from the RAC is even more optimistic - suggesting that the cost of unleaded petrol is now below 170p (169.8p) for the first time since May. That means that in the last month the cost of filling a 55-litre car has fallen by £6.77 in a month, from £100.16 to £93.39.
However, despite cheaper petrol at the pumps, the RAC believes motorists are still paying too much. It says wholesale petrol prices have fallen to 124.08p per litre - and the last time the cost of wholesale petrol was at its current level, motorists were paying around 162p per litre for unleaded petrol.
RAC spokesperson Rod Dennis said: “Twelve pence a litre is a lot to come off prices in a single month so there’s no doubt things could be worse, but in reality drivers of petrol vehicles are still invariably getting a raw deal at the pumps. For whatever reason, major retailers are choosing not to pass on in full the reductions in the wholesale price of unleaded they’ve been benefiting from for some considerable time now – and this continues to mean drivers are often paying much more every time they fill up than they should.”
