Petrol prices fall but diesel among costliest in Britain

SCOTLAND has seen one of the sharpest falls in petrol prices in the UK, with an average cost of 132p per litre at pumps in December.

Out of 12 UK regions, only the north of England has seen a sharper drop from November to December, or now has cheaper petrol. Across the UK, petrol has fallen to its lowest level since March.

However that is still high compared to previous years.

The AA, which carried out the study, does not expect prices to continue to drop in the new year, as the price of oil is expected to rise again.

Edmund King, AA president, said: “As more severe winter conditions push up fuel consumption and families contemplate the cost of Christmas travel, it will anger many that pump prices remain artificially high in so many places. This is simply because there isn’t the transparency in the fuel market to indicate where prices should be.”

He added: “AA research shows that 28 per cent of its members budget a set amount on fuel, that rising to 40 per cent among less well-off drivers.

“Getting to and from a superstore at the end of the week can easily consume a litre of fuel.”

While the price of petrol has fallen in Scotland, diesel costs remain comparatively high.

In the past month, diesel has risen 0.3p to 141.9ppl, with only Northern Ireland now more expensive than Scotland.

This has put pressure on hauliers, in particular, who are suffering from the twin pressures of high diesel prices and a tough economic climate. Phil Flanders, director for Scotland at the Road Haulage Association, said: “It’s pretty grim coming up to Christmas.

“Trading conditions are poor. Construction’s not that great. Retail’s not that great.

“The only sector that is reasonably buoyant is agriculture with livestock being bought for Christmas, but overall it’s not good.

“Every increase [in the cost of diesel], puts extra pressure on and now a lot of businesses are pushing in the opposite direction – no-one wants to pay hauliers any more. If hauliers do go out of business then prices will go up because there will be a shortage of hauliers, but that’s not happening yet.”

The AA said it was unclear why diesel prices were significantly higher in Scotland than south of the border.

In the North East of England the cost of diesel did not rise last month, but remained at 140.8ppl - 1.1ppl lower than in Scotland.

An AA spokesman said: “The question is, why is diesel in Scotland significantly more expensive? Is it down to what is being charged at forecourts, or what forecourts are having to pay to get it?

“We just can’t tell because of a lack of transparency.”

The reasons for a drop in petrol prices are clearer.

“I suspect this is the influence of Asda,” the spokesman said.

“Asda’s low prices tend to bring the market down where they have a high presence – and I suspect that includes the Central Belt of Scotland.

“Also independent retailers are very good about passing on cuts in wholesale prices to consumers, and Scottish consumers can be very aggressive [in finding the cheapest petrol] if they feel they are getting ripped off.”