High cost of fuel drives Brits to fill up abroad

Country:  UK

27 May 2008

With soaring fuel costs affecting the prices of flights, it is becoming more cost-effective for holidaymakers and homeowners to drive to their overseas destination, especially as some countries in the Eurozone allow for cheaper petrol per litre than the UK.
 
Since the beginning of the year, oil prices have risen 40%, pushing the average price of petrol in the UK to 112.6 pence per litre and diesel to 124.2 pence per litre. According to a recent report the UK has the ninth highest unleaded petrol cost in Europe, and the second highest diesel price.       
 
Nick Fullerton, MD of specialist currency brokers FC Exchange commented, “For anyone travelling abroad this year, you will feel the pinch with cost of flights due to fuel costs – driving abroad can be the cheaper option with some Eurozone countries selling fuel at a far cheaper rate than the UK, such as Spain, Greece and Slovenia. However, holidaymakers should keep their eye on the ball and do their research before setting off, as there are countries in the Eurozone that charge more for fuel, and if the euro has further strengthened you could end up getting less than you would in the UK.”
 
Budget airline easyJet previously warned investors that its profits may be lower than expected this year due to the potential £45 million rise in fuel costs. While its rival, Ryanair, has already warned that higher fuel prices may prompt a 50 per cent drop in its net income this year.
Over in the USA, major airlines have also reported losses with the rising oil prices, and are looking for new ways to cut costs such as making the planes lighter to conserve fuel. For example, JetBlue have reduced their Airbus A320 weight by 904 pounds, by removing six seats.

Source: Air Transport Association