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Fuel prices tumble below €1/litre

Diesel widely available at lowest price for more than five years – but drivers’ Christmas bonus will end soon

FUEL prices have reached their lowest level for several years with diesel widely available below €1/litre and petrol could soon follow.

Diesel was last widely available below €1 in 2009 but the pre-Christmas bonus for drivers will not last long, especially as fuel tax rises to end diesel’s price advantage will come into force at the start of next month.

Some drivers in Poitou-Charentes, Pays-de-la-Loire and Nord are also benefiting as they are not paying the regional portion of the fuel tax, but this will also change in the new year with the new giant regions.

Fuel tax is to rise 3.5 centimes on diesel and 2 centimes for unleaded SP95 petrol on January 1. There is no tax rise on SP95-E10, which contains bio ethanol and is seen as less polluting – and this will mean one in three motorists will avoid the tax rise.

The government’s official price alert site at www.prix-carburants.gouv.fr shows lowest prices for diesel at below €1 across much of the country – with just Hautes-Pyrénées among mainland departments missing out, plus Corsica.

Tumbling fuel prices come as the price of oil has fallen 60% since June 2014 and is now sitting at $35 per barrel - and could fall below $30 as oil-producing countries battle cheap shale gas reserves from the US.

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