19 November 2001: Petrol prices have fallen significantly in the last month with a litre of unleaded petrol now costing 62.4 pence on average, a drop of almost a full four pence in the last month. Diesel prices have also fallen by over a penny to 57.7 pence a litre.

The figures come from the latest AA monthly fuel price survey. It’s good news, says Conor Faughnan, AA public affairs manager, who believes the outlook is for further reductions in the short term.

The AA has urged for duty levels not to be raised in the forthcoming budget. “Low cost fuel helps the economy and there is now a recognition that expensive fuel is inflationary and adds to everyone’s cost base,” says Faughnan. He believes it is a mistake to treat transport as an ‘old reliable’ in the budget because it is an economic and social necessity, not a luxury’.

The AA believes the close attention of both the AA and the Competition Authority on the petrol retailing sector seems to be encouraging real competition to an extent, although consumers still get very poor value in some areas.

“Why do petrol prices vary so much?” asks Conor Faughnan. “We keep asking the industry to explain it and they keep ignoring us. Why so secretive?” He says the AA is simply asking them to explain to their customers how they decide on what petrol should cost. “It’s not an unreasonable question, but they refuse to answer it.” TW