Falling energy prices

Over the last few weeks we have seen energy prices falling steadily which has been good news for consumers. Not only have many of the major suppliers announced reductions in their tariffs, but petrol prices have also been cut regularly in recent months.

From a high of over £1.40 a litre for unleaded petrol in 2012, the cheapest price in Dartford today (at the time of writing) for a litre of unleaded, was just under £1.03 a litre.

The reduction in fuel prices is partly due to the fall in oil prices.  However, the Government has also frozen the fuel duty escalator which has cut the amount of tax paid.

It is pleasing to see that energy providers are passing some of these reductions on to householders and consumers but more needs to be done by them to ensure this happens.

Labour suggested there should be a freeze on prices but I think that would have been a mistake because a freeze would not have led to the reductions we are seeing now.

These reductions will also have a knock-on effect on the price of goods and services. Lower fuel costs mean lower prices in the shops and with inflation at just 0.5%, people are now starting to see lower grocery bills.

After a number of tough economic years, we are now increasingly seeing the benefits and standards of living are starting to improve.

We should not throw that progress away and I look forward to seeing prices falling even further in the coming months.