Petrol Prices Drop To A Three-Year Low
UK petrol prices are at their lowest level for three years, according to a new survey of the nation's forecourts.
The AA said in mid-March the average pump price was 129.46p per litre, which is down 6.47% on the same time last year when the average for petrol was 138.42p.
The motorists group added that recent wholesale cuts might see a further drop for petrol of 2p a litre.
It added that diesel prices are at their lowest level for nearly two years.
It said diesel-users on average were paying 136.59p in mid-March - the lowest since July 2012.
On Wednesday, the Chancellor announced in his Budget that the September fuel duty rise would not be brought in.
The AA said that the cheapest fuel prices were in Yorkshire and the Humber, with the most expensive in Northern Ireland.
The West Midlands and London were best for diesel at 136.3p while Scotland was the most expensive, where motorists on average were charged†1p more a litre, according to the AA.
Although headline prices have dropped, real wages have not kept pace.
The Office for National Statistics said inflation over the last four years had in effect turned a 2% annual wage increase into a 8% fall in real terms.
Last year, the Office for Fair Trading (OFT) said price variations can occur in regional areas where competition was higher.
It said: "Petrol and diesel tend to be cheaper in local areas that have a greater number of local retailers, in particular areas where there are supermarket forecourts."
The OFT has previously found that fuel is often significantly more expensive at motorway service stations.
"In August 2012, for example, prices were on average 7.5p per litre higher for petrol and 8.3p per litre higher for diesel than at other UK forecourts," it said in last year's report.