With oil prices continuing to tumble the “big four” supermarkets have announced further fuel prices cuts that could pave the way for the magical £1 a litre.
Tesco, Morrisons, Sainsbury’s and Asda will all reducing prices of both diesel and petrol by 2p a litre. Tesco has already dropped the price at it’s forecourt with the others following tomorrow.
The recent fuel prices have been caused by reduced global demand for oil together with the US and Arab states battling for peak production. Just six months ago Brent crude oil was trading at $115, its now going for less than $55.
Even though fuel duty has remained “frozen” for as long as we can care to remember (actually 2011), the cost of what you pay at the pumps mainly goes to “the man”. A whopping UK 58p per litre for petrol and diesel is made up of fuel duty, with VAT on top of that.
We’re certainly not knocking the crashing fuel prices but just remember that the UK pays one of the biggest premiums for fuel. According to a report by thisismoney.co.uk the UK ranks 3rd in the world for the most expensive place to fill up. Just behind the crazy folks from Denmark and the Netherlands.
For more information on how fuel duty and tax breaks down see the GOV.UK website