Following the pound’s recent comeback against the euro, British holidaymakers travelling to Europe this summer are in for more good news, as fuel prices have plummeted across the continent by up to 12% for unleaded petrol and as much as 31% for diesel, according to a recent Post Office survey.

Switzerland was cheapest for unleaded petrol at just 91p a litre. However, driving in Austria and Spain can work out even cheaper if you opt for a diesel-powered hire car. The cost of diesel is just 83p a litre in Austria and 87p a litre in Spain. Unleaded petrol in all three countries now costs around 34% less than in the Netherlands, the most expensive of 12 destinations surveyed by the Post Office.

The survey found that, despite a 19% drop in the litre price over the past 12 months, the UK was the only country where diesel costs more than petrol, and is the second most expensive country for diesel after Norway. It’s not all bad news for Brits staying at home this summer though, as unleaded petrol is now 10% cheaper in the UK than it was last year.

Fuel prices in the Eurozone continue to vary. Motoring in the Benelux region is particularly expensive, with fuel prices 27% higher in Belgium and 32% higher in the Netherlands than in Austria and Spain. The Netherlands, Germany and Italy were the only countries surveyed to have experienced price rises in unleaded petrol since last year. The biggest price fall was registered in Sweden, with a 12% drop in the cost of unleaded petrol and a 32% fall in the price of diesel. Diesel prices also fell dramatically in Denmark, by 28%.

Sarah Munro, Post Office head of travel said: “Sterling is recovering just in time for the holiday season and combined with the price reductions for fuel and car hire, UK drivers can get more miles for the same money.

“Whilst price reductions introduced since last year make motoring holidays an attractive proposition, tourists
need to check the price of unleaded petrol compared to diesel to ensure they don’t get caught out.”

The Post Office report also examined the cost of hiring a car in 20 popular holiday destinations, including the USA, where Florida prices have surged since last year. A combination of high fuel costs and rental charges, together with the impact of the weak pound, have led to a 65% increase in the cost of hiring unleaded petrol cars in the USA.

Portugal came out top for car hire value, with a year-on-year price drop of 21%. Competitive three-day car hire packages put the country well ahead of its nearest rivals - the UK, Turkey and the Netherlands - in terms of value for money motoring. By contrast, a 65% price hike brought the price of hiring a car in France for three days to a whopping £264.10.

Sarah Munro said: “This year’s report shows more evidence of price cutting activity to boost tourism in popular European summer holiday resorts. The huge drop in car hire costs in both Portugal and Greece is great news for UK tourists and is another factor that should be taken into consideration when choosing a holiday this year.

“However we found little consistency in the charges made for one, three and seven days’ car hire. In some cases prices had risen substantially since last year for one day, while the same rental company showed reductions for longer hire periods – and vice versa. The clear message to consumers is to shop around and not to assume that a car hire company used in the past will still offer the best value,” she added.

“While motoring tourists can make great savings by choosing destinations with lower fuel or car hire prices, they should remember to buy currency in advance of their trip. By no means all petrol stations accept credit card payment and so it is wise to carry foreign currency purchased in the UK where the exchange rates are likely to be lower than at an ATM overseas.”

This entry was posted on Thursday, July 2nd, 2009 at 10:45 am and is filed under Budgeting, Travel Insurance, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.