Friday 7th November 2008
by Bob Bardsley
Know Your Money Editor
Many motorists could currently consider petrol to be among their essential purchases, rather than viewing their private transport as a luxury item on which to spend their hard-earned cash. But with petrol prices topping £1 per litre for unleaded recently at forecourts across the country, drivers may well be left wondering how they might be able to reduce their ongoing expenditure on fuel, as well as looking out for voices within the industry which are on their side.
AA
The AA has recently noted that more than two-thirds of motorists now typically buy their vehicles' fuel from a supermarket, rather than a dedicated petrol forecourt. With such buying power in the hands of the supermarkets, the motoring organisation points out that it might not be seen as surprising that the shopping centres play a major role in determining how much drivers are asked to pay for a litre at the pump elsewhere in the country. However, the AA has also stressed that some more vulnerable individuals with cars to top up may be neglected by special offers and promotions that make fuel more affordable for everybody else.
For instance, the organisation argues that elderly drivers - who do not have a large household to cater for - might be unlikely to spend large amounts on their weekly food shop at any one time. As such, offers which provide motorists with a discount at the pump in line with how much they spend at the till could neglect the elderly by setting qualifying cut-off prices too high for them to reach. This is in spite of the above-average loyalty shown among older drivers for the supermarkets in research published by the AA, as half of over-65s polled by the organisation indicate a "strong preference" towards refuelling at a supermarket rather than a petrol forecourt, compared with 43 per cent of the population as a whole.
The ministers
Recent headlines featured in the Guardian have noted the AA's suggestions that government ministers should be required to publicise the wholesale cost of fuel as part of an attempt to provide the public with greater levels of transparency about the amount of profit petrol companies are making for each litre or gallon pumped into their cars. President Edmund King told the publication: "The wholesale price is not published in the public domain and we do not think it is fair." He added that the cost of both petrol and diesel is "crucial" to the UK economy due to the fact that many citizens are dependent on different types of fuel in order to carry out their day-to-day activities.
The AA also noted that, in Australia, a scheme is already in place to ensure that wholesale prices are published to the public should any change be recorded in industry pricing. By doing so, the motoring group argued that consumers can be made more aware of when the wholesale price paid by their supplier changes - whether it moves up or down - and as such it may be possible to inform them about whether or not petrol providers have passed on any savings in terms of their forecourt prices or are looking to make a greater profit from the petrol which passes through their pumps.
Saving fuel
Motorists have a number of options to consider when attempting to save money on their fuel - with one potential price-saving measure being to shop around and refill at a forecourt which is more reasonably priced than its competitors. Doing so could mean avoiding motorway service stations if those closer to home or in built-up areas charge a preferable price.
Web resource Save Petrol points out that spending less on fuel could be a matter of using less, rather than buying at a better price. The information provider has a number of suggestions to help individuals use less fuel, such as making sure tyres are inflated to the specified pressure. This helps to reduce the level of resistance between the car and the road, meaning less fuel is required to keep moving at a particular speed.
More general driving tips from the website include the suggestion of driving as smoothly as possible, as bursts of accelerating and decelerating both use greater amounts of fuel than gradually increasing or decreasing speed. The site adds that putting the car into neutral when coasting along might prove to be false economy in light of the fact that a small amount of petrol is still consumed when in neutral in order to prevent the vehicle from stalling.
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