- 07
- Aug
The levies imposed on fuel consumption in the UK are partly responsible for UK consumers paying more at the pump than their peers throughout Europe, uSwitch has claimed.
According to the price comparison site, Britons now pay an average of 119 pence per litre and have, over the course of the last five years, typically forked out 20 per cent more than those on the continent. It noted that drivers in Spain are currently enjoying the lowest prices on the continent, with a litre of petrol commonly costing 96 pence, 23 pence cheaper than in the UK. Explaining the inflated prices paid by British drivers, the group noted that for every litre of petrol purchased, 59 per cent of the cost is paid in to the public purse. If such a levy were not in place, uSwitch indicated that petrol prices would be pegged back to 50 pence per litre.
For those who have been struggling with petrol costs in recent months, taking out a car loan may be an effective way to make an investment in a more fuel-efficient model. Such a loan could even be used to purchase a hybrid or electric vehicle, both of which receive concessions from road tax commitments.
Indeed, as uSwitch expert Mark Monteiro illustrated, the costs of fuel, on top of other motoring expenses, is becoming too difficult to bear for some motorists.
Commenting on the study, he suggested: “Cash-strapped consumers are juggling price increases across all fronts. Petrol prices are yet another rising cost to contend with adding further strain to already stretched finances. As a direct result of these high prices it would be no surprise to see motorists leaving their cars at home and using other methods of transport. However, drivers who are reliant on their cars for business or live in remote areas will be hardest hit – for them, leaving the car at home is not an option.”
For such individuals, opting for a car loan in order to invest in a hybrid may be of particular interest.
In order to illustrate the effect inflated petrol costs are having on Britons, uSwitch examined the average fuel expenditure on a number of top brand cars. It noted that while Ford Fiesta drivers will pay an average of 54 pounds to fill up the tank, in Spain it would cost 43 pounds. Spread out over the length of a year, the 20 per cent reduction in fuel prices common in Spain would deliver savings of 278 pounds.
Meanwhile, a BMW 3 is more than 400 pounds dearer to run for a year in Britain than it would be in Spain.
Elsewhere, moneysupermarket announced late last month that a number of petrol price reductions enacted by major supermarkets across the UK may come as a welcome respite to motorists who are struggling to keep their vehicles running. Sainsbury’s, Asda and Morrisons all slashed prices in July, with Asda stating that the move had been made possible by recent declines in global oil prices.
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