Hargreaves Lansdown has conducted an analysis of the savings which will be made by UK consumers as a result of lower prices at the petrol pumps. The results, shown below, suggest the saving will be significant and should have a positive impact on the economy, as consumers will now have more in their pocket to spend on other goods and services.
- Motorists save £146 a year on average from lower prices at the pump
- We estimate the total saving across all consumers to be £5.3 billion
- This saving is equivalent to a 1.3p drop in the basic rate of income tax
- It is much more than the saving from recent energy price cuts, estimated to be around £0.5 billion
- The highest income households can typically expect to save £329 a year
- Male motorists can expect to save £175 a year, compared to £114 for female motorists
- North/south divide in benefits from lower prices at the pump
- The average Londoner benefits least from the price falls
- 3 stocks which stand to benefit from greater consumer spending power