Diesel has smashed through the £2-a-litre mark this week, with a 55-litre tank now costing an eye-watering £110, according to consumer editor Katie Elliott. The average litre of unleaded is now around 175p, meaning filling the same tank with petrol costs £96.
Why prices are soaring
The conflict in the Middle East shows no sign of a real ceasefire, sending wholesale gas prices to heights not seen before. While the US has backed away from a threat of an export ban on diesel, pressure on Europe to release emergency diesel reserves shows just how precarious the global fuel market is right now. Releasing emergency stocks should help ease prices in the short term by putting more diesel on the market, but questions remain over what comes next.
Supermarket deals and apps
Asda Reward customers who spend £40 in participating stores before October 14 will get a 5p-per-litre fuel discount coupon, redeemable before October 31. Tesco offers 8p off per litre for customers who spend at least £60 in-store by October 18. Even without coupons, supermarkets are generally the cheapest places to fill up. According to RAC Fuel Watch, Asda offers the lowest average petrol price at around 173p a litre, while Tesco offers the cheapest diesel at 197.6p.
Fuel price comparison apps like PetrolPrices or FuelPal can help find the lowest prices nearby.
Tips to improve fuel economy
The AA advises sticking to consistent lower speeds, as driving at 70mph uses 9% more fuel than 60mph and 15% more fuel than 50mph. Removing unused roof racks or heavy goods from the boot can also help, as can backing into parking spaces – apparently you lose less fuel when you pull off.
In related news, NS&I hiked interest rates on its British Savings Bonds this week, with savers able to bag between 4.89% and 5.17% AER on new issues of one, two, three, and five-year Guaranteed Growth and Guaranteed Income Bonds. The HM Treasury-backed institution said the increases come in response to the wider savings market. However, other providers are offering up to 5.35% at the time of writing, so shopping around with comparison sites like Moneyfacts or MoneySavingExpert is advised.
