Oil prices have fallen sharply from a peak of $118 a barrel in late April to around $77, driven by hopes of a US-Iran peace deal. However, motorists are yet to see significant relief at the pump, with petrol and diesel prices remaining high.
Fuel Prices Still High Despite Oil Drop
RAC head of policy Simon Williams noted that while the oil price decline is good news for drivers, petrol averages 156p a litre and diesel 177p, down from recent peaks of 159.5p and 191.5p respectively. He added that prices could fall further to 148p for petrol and 159p for diesel if oil supplies increase.
Yet Howard Cox of FairFuelUK argued that drivers are not benefiting fully from lower wholesale costs. “Oil prices have plunged by 11% in just four days, yet pump prices have fallen just 1%. The fuel supply chain is again holding back on passing on wholesale price cuts to drivers,” he said.
How Speed Affects Fuel Consumption
Motorists can take action themselves. Beth Fountain, fuel expert at Interfuels, cited AA figures showing that driving at 70mph uses up to 9% more fuel than at 60mph, and up to 15% more than at 50mph. “Dropping from 70mph to 60mph can save you one litre in every 10. Do that across a year of regular motorway driving, and you are talking about a meaningful saving,” she explained.
Drivers pushing to 80mph can use as much as 25% more fuel than those at 70mph due to increased wind resistance. For most cars, efficiency peaks between 45mph and 55mph. “Speed is actually one of the biggest variables of all, and it is entirely within the driver's control,” Fountain added.
Smooth Driving and Premium Fuel
Gentle acceleration, anticipating traffic, and avoiding heavy braking also reduce fuel consumption. “A driver doing a consistent 65mph should use less fuel than someone doing 60mph but accelerating and braking sharply,” Fountain said.
On premium fuel, she noted that it can benefit high-performance or newer vehicles designed for higher-octane fuel, but for most cars, the difference is minimal.
Downsizing Vehicles Saves Thousands
The biggest saving may come from owning fewer cars. Tempcover research found that two in five motorists have reduced the number of vehicles in their household over the past two years. Those who downsized estimate saving an average of £1,533 a year on insurance, tax, fuel, maintenance, and depreciation. Tempcover chief executive Paul Gilshan said: “For households that have downsized, one car works well.”
While not practical for everyone, combining slower driving, skipping premium fuel, or running one less vehicle can help control costs. However, lower oil prices could tempt the Treasury to reverse the fuel duty freeze and 5p per litre cut in the future.
