Lower prices yet still declining petrol sales

Lower prices yet still declining petrol sales

Figures released by the Department of Energy and Climate Change show that although forecourt prices had been lowered, sales of petrol during the first half of this year fell.

Compared to the same time period of 2011, petrol sales fell by almost 500 million litres in the first half of 2012. Sales were rising at the start of the year because of the tanker drivers' strike threat, and many people started panic buying. 16.7 billion litres of fuel were sold during the first half of this year. This is over 2 million litres less than was sold during the same period of 2008 (which was 18.97 billion litres).

Rising fuel prices, coupled with insurance costs, road tax and other expenses, mean that many motorists are limiting their journeys or cutting down on car usage, in an attempt to save money.

The AA's president, Edmund King, placed the blame of the decline on the fuel industry because they are "trying to squeeze more money out of shrinking customer demand". He went on to say: "While we welcome the fact that new cars have become more fuel-efficient, this goes nowhere near to accounting for the crash in demand over the past three months, and the past five years."

The Department of Transport has yet to comment on the situation. The AA's press release can be read here: http://www.theaa.com/newsroom/news-2012/petrol-sales-down-in-second-quarter.html

---

---