Fuel costs at four-year low as well as government demands a lot more cuts

The expense of fuel has hit a four-year low, with costs now below what motorists were paying before the VAT boost in 2011. That’s not sufficient for the the Government, however, with the Treasury set to demand that fuel vendors go even additionally in the run-up to the general Election.
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Chief secretary of the Treasury Danny Alexander believes oil vendors need to pass on cost savings to consumers rather than keeping additional revenues for themselves. Oil has fallen from about $115 (£72) per barrel in June down to around $84 (£52) per barrel now.
According to AA figures, the typical cost of petrol across the UK is 124.93p a litre – that’s less than the 125.19p registered in January 2011 before VAT went as much as 20 per cent. Diesel costs now typical 129.15p a litre, compared to 129.30p in 2011.
Since 2011 there’s been an annual trend, with costs falling in October as well as November before rising later as well as commonly peaking in summer. Our graph above shows data for 2013, when costs increased in March as well as August before dropping off in winter.
This suggests motorists may expect costs to stay low only for the next few months, before rising next year. But the AA suggested 2015 may buck the trend, with a 4.5p saving yet to filter with to the consumer from wholesale fuel prices.