Petrol prices hit three-year low

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Low petrol prices are easing pressure on drivers faced with an actual-terms dip in earnings according to new research.

The AA found that petrol costs are at a three-year low while diesel prices have not been as low since July 2012.

Inflation has seen a typical two percent a year boost in earnings create an overall eight per cent decrease between 2009 and 2013, meaning that households are left with less money.

Wages are now at 2002 levels, once inflation has been included.

Petrol averaged 129.46p a litre

Around the forecourt, petrol prices averaged 129.46p a litre in mid March in comparison to 129.63p in mid February.

A year ago, the price was much greater, at 138.42p a litre.

Meanwhile, the average diesel price was 136.59p a litre in mid March in comparison with 137.02p last month. A year ago diesel was 145.24p a litre on average.

This week’s Budget announcement saw Chancellor George Osborne freeze fuel duty.

Fuel duty freeze

A number of other European countries, including France, Holland, Italy and Sweden, have seen increases in fuel duty.

According to the AA, there has additionally been a slight boost in the number of UK petrol stations.

The recent figures will act as a boost to the industry, though for many years, petrol stations have been around the decline in britain.

The recent weather has also been kinder to both fuel and drivers retailers, with better conditions seen compared to the extreme cold and high snow of March 2013.

Business difficult for fuel retailers

AA president Edmund King said: Appalling weather up until 10 days ago will have reduced car fuel and make use of consumption.

However, official figures on inflation-hit earnings reveal a more persistent dark cloud hanging over the ability of UK drivers to use their cars. This is certainly clearly making business a hardship on fuel retailers too.

Nationally, the cheapest location to find petrol is Yorkshire and Humberside, where the the normal price in the pump is 129.1p per litre.

It is still the most costly region, though northern Ireland has fallen below 130p per litre like the remainder of the country.

London and the West Midlands will be the cheapest for diesel, which happens to be selling at an average of 136.3p a litre. Scotland has the most costly diesel, at 137.3p.