UK motorists have been given a considerable as new figures have revealed that unleaded petrol prices have hit a four-year low.
The government confirmed that the cost of unleaded petrol has fallen nine per cent from the summer high of 131.11p per litre to 119.83p. Diesel prices were also on the decline falling from 136.22p to 124.79p during the same period. It comes as global oil prices have also experienced a considerable drop in recent months.
Since July, the cost of oil has been falling dramatically and currently stands at $65 (£41) a barrel, down from the $115 per barrel recorded in summer. A meeting of the Organization of Petroleum Exporting Countries (Opec) resulted in members deciding against a drop in production which could have helped to stimulate prices.
Nations such as Saudi Arabia and United Arab Emirates, along with non-member Russia, backed keeping production at its current level. Officials from the Middle Eastern countries argued that the decision would be justified as the markets would normalise in the future providing a boost in prices.
In the UK, despite the drop in unleaded petrol price campaigners believe the government has more power to reduce prices at the pumps. Research by the AA noted that around two-thirds of the average price paid for a litre of petrol is made up by a combination of 20 per cent of VAT and a 57.95p fuel duty.
Simon Williams, spokesman for the RAC, is optimistic about a drop in prices: "We are hopeful motorists will see average petrol prices under 112p a litre, something they will not have seen since February 2010.
"If this happens the cheapest retailers will no doubt be selling petrol for well under 110p a litre, perhaps even lower."
Major supermarkets such as Asda, Morrisons, Tesco and Sainsbury's have already moved to drop their petrol prices following the research by the AA.
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