Fuel Prices Reach Record High
Published: 27 December 2010 By MoneyHighStreet Staff Leave a Comment
Fuel prices are rising with the cost of both petrol and diesel fuel having now reached a record.With the VAT rise in January there will be another hike too.
Petrol now costs on average 15.32p and diesel 17.79p per litre more than in December last year and that’s before the January price rises according to AA Financial Services.
And the cost of a litre of unleaded petrol will rise by a further 3.5p with increases in both fuel duty and VAT from 4 January.
Mark Huggins, director of AA Financial Services commented, “The AA’s figures show that the cost of fuel has risen by more than 15p per litre over the past year, adding over £32.50 to the monthly petrol bill of a two-car family. Coupled with the January price rises this is putting huge pressure on many household budgets.”
The AA Credit Card can help keep the cost of motoring in check, Huggins suggests. The card offers a generous reward points system and AA members can earn the equivalent of 4% back on the AA Credit Card reward scheme when they redeem points earned on motoring or fuel spend against other AA products.
AA reward points can be redeemed on a wide range of goods, including AA products, high street shopping vouchers, wine, days out or cash back.
However, as Huggins added “Using the AA Credit Card for all fuel purchases helps to combat these increases in cost.
As well as the introductory 0% on purchases for 10 months (APR 16.9% typical rate variable), the card earns double points on the purchase of fuel, including that bought from supermarket filling stations while AA members earn points at twice the rate of non-members,” Huggins points out.
The AA Credit Card can be applied for at www.theAA.com where there is also a calculator to help work out points-earning potential.
To show the scale of savings that can be achieved by switching everyday spend to an AA Credit Card here are 2 examples of family usage.
Family 1 – AA member – using card only for fuel purchases, over 1 year, 15,000 miles assuming average 35mpg, total 1,948 litres.
Total cost assuming an average price over the past year of 119p per litre, total cost £2,318.12 Fuel points earned: 4,636
And if in addition they spent £250 per month for normal shopping – i.e. groceries, luxuries etc: £3,000 Non-fuel points earned: 3,000
Total points earned: 7,636
Family 2 – non AA- member – using the credit card with same purchase pattern as above
Fuel points earned: 2,318
Non-fuel points earned: 1,500
Total points earned: 3,818
The Rewards can then be redeemed in a variety of ways, for example
- redeemed for shopping voucher, AA member: worth £76 or Non-member: worth £38
- redeemed for contribution towards cost of AA car insurance, AA member: worth £152 or Non-member: worth £76