Six ways you can cash in on plunging petrol prices

Petrol prices continue to spiral downward in the run up to Christmas, with Asda announcing an 11th round of price cuts.

The supermarket will drop its national price cap on Thursday. As a result, drivers will pay no more than 110.7p a litre on unleaded and 117.7p a litre on diesel across its 245 filling stations. As The Mirror reported, some commentators have even predicted petrol could fall below £1 by the New Year.

But petrol prices can vary, in some cases by as much as 5p a litre in the same town. So how can motorists make sure they are making the most of this race to the bottom?

Here are our 6 top tips:

1. Fill up at busy petrol stations

These stations buy more petrol and can take advantage of falling prices. “The big petrol stations have deliveries every day so they can change the price,” Arthur Renshaw, of petrol station analyst Catalist Experian, told The Mirror. “But a small petrol station in a village may have a delivery every couple of weeks.”

2. Choose a big station

Stations buy their fuel on the petrol market. Just as in any other negotiation, the big buyers are better able to strike a deal.

3. Look for a cluster of petrol stations

When several stations are close together, they are more likely to cut prices to tempt drivers in. “If you are in the Highlands and Islands of Scotland, you have much less competition than in the centre of Manchester,” said Renshaw.

4. Do your research

The website PetrolPrices.com allows you to compare prices in your area. It also lists the latest average prices, so you know if you’re being ripped off.

5. Play the supermarket game

Supermarkets are competing on fuel prices along with everything else. When you’re shopping, keep an eye out for vouchers offering petrol discounts. But be aware of the overall cost. “That is one way to get prices down below £1, but you do need to buy a lot of food to get that result,” PetrolPrices.com owner Peter Zaborszky said.

6. Stop by provincial towns

Airports, motorways, expensive cities and rural areas have the highest charges, according to PetrolPrices.com analysis. “The golden path is down the middle where rent is cheap,” Zaborszky explained.