http://www.telegraph.co.uk/motoring/...w-says-AA.html
According to motoring group the AA, the average price for a litre of unleaded petrol was 87.79p on Monday compared to 88.27p on the same day in 2005.
Diesel has fallen on average to 99.72p per litre, last seen in November 2007.
The drop in prices follows five months of plunging oil prices around the world as investors start to 'price in' a major global recession, which will see less demand for oil. With less demand, there will be more of the resource to go around, meaning it will cost less.
Last night the price of Brent Crude fell to $36.82 a barrel, a mere quarter of the price it hit in the summer, when it peaked at $145.
The AA calculates that the falling petrol price – which has followed oil downwards, if less dramatically so – means a British driver is on average now paying nearly £16 less to fill up a typical 50-litre tank. The average tank now costs £43.90.
A family with two petrol cars is now spending £68.39 less per month on fuel.
Paul Watters, the AA's head of Public Affairs, said: "Families are making substantial savings from the fall in pump prices in recent months, although AA Populus research shows that many are still cutting back – some even more deeply through fear or the impact of the economic slowdown."
While drivers are benefiting, however, no gas and electricity customers have benefited so far from the plunging oil and gas prices on the wholesale market.
There is mounting pressure on the 'big six' energy suppliers to announce a price cut in the New Year.
According to motoring group the AA, the average price for a litre of unleaded petrol was 87.79p on Monday compared to 88.27p on the same day in 2005.
Diesel has fallen on average to 99.72p per litre, last seen in November 2007.
The drop in prices follows five months of plunging oil prices around the world as investors start to 'price in' a major global recession, which will see less demand for oil. With less demand, there will be more of the resource to go around, meaning it will cost less.
Last night the price of Brent Crude fell to $36.82 a barrel, a mere quarter of the price it hit in the summer, when it peaked at $145.
The AA calculates that the falling petrol price – which has followed oil downwards, if less dramatically so – means a British driver is on average now paying nearly £16 less to fill up a typical 50-litre tank. The average tank now costs £43.90.
A family with two petrol cars is now spending £68.39 less per month on fuel.
Paul Watters, the AA's head of Public Affairs, said: "Families are making substantial savings from the fall in pump prices in recent months, although AA Populus research shows that many are still cutting back – some even more deeply through fear or the impact of the economic slowdown."
While drivers are benefiting, however, no gas and electricity customers have benefited so far from the plunging oil and gas prices on the wholesale market.
There is mounting pressure on the 'big six' energy suppliers to announce a price cut in the New Year.
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