Falling petrol prices latest

6:34pm Thursday 31st July 2008

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The first significant cut in the price of fuel for 18 months has been cautiously welcomed by motorists in Oxfordshire.

The county's average price for unleaded petrol and diesel peaked at 119.9p and 132.9 pence per litre respectively earlier in the month.

Industry experts said the country was experiencing a brief respite thanks to a fall in the price of crude oil and the decision by leading supermarkets to cut prices at petrol pumps.

At filling stations located within 10 miles of Oxford, prices now range from 111.9p to 119.9p for unleaded and 128.9p to 132.9p for diesel.

The average prices according to Petrol prices.com stood at 117.5p and 131.1p respectively.

Mother-of-five Myfanwy Brown, from Headington, Oxford, said she hoped prices would continue to fall.

The 32-year-old said: "We have a seven-seater Toyota Picnic and this time last year unleaded cost about 90p per litre.

"Now it's around the £1.20 mark, we've definitely noticed the difference.

"My youngest is 18 months and my oldest is nine. For a large family like ours, the car is still the most sensible option, but having to find the extra money has really stretched our budget.

"The price drop is hugely welcome - I'm not sure how much we could afford. Petrol prices affect the price of food as well, so it helps with everything."

Witney taxi driver Brooke Purvis, who organised a go-slow fuel protest on the M40 earlier in the month, said: "I'm glad, but people are still predicting diesel will be at £1.50p at the end of the year and the Government levies a 70 per cent tax - it's a joke."

At the Sainsbury's supermarket at Heyford Hill, on the outskirts of Oxford, unleaded petrol was selling for 114.9p per litre - one of the lowest in the city.

Station spokesman Jo Baker said: "We have been very busy and customers are pleased, but they want prices to come down more."

Louise Doherty, a spokesman for the price comparison website Petrolprices.com, said there had never been a wider margin between the most expensive and cheapest fuel available to buy nationally - currently 19p for unleaded - so it was important to shop around.

She added: "It's fair to say we're experiencing a brief period of respite at the moment.

"I think prices will continue to go down significantly if the supermarkets cut prices again, but demand for oil is still high globally and we're still refining less diesel than we need.

"The long-term trend is that the price of oil is going up - we'll go back to £1 a litre again."