COMMENT
Beat Soaring Petrol Prices

The prices of petrol and diesel have been increasing for a while now making filling up the tank a costly business. However, prices have been rising even more sharply recently, with petrol increasing by more than 2p per litre over the weekend to an average of 94.6 pence/litre (according to industry body Catalist) and the price of diesel is expected to top one pound per litre in just a few weeks time. Blimey!

The recent price hikes followed the closure of oilrigs and refineries in the wake of Hurricane Katrina. The price of oil has increased dramatically in anticipation of a huge surge in demand with 80% of crude oil production in the Gulf of Mexico still out of action. What's more, there may be further price rises to come, which has prompted retailers such as BP and Shell to consider how to alter their forecourt signs to read £1 a litre.

However, some experts believe this price hike is a 'spike' and that prices will drop away in the autumn, which is traditionally a time when demand eases.

So is there any way we can combat these price rises? Well, it's worth remembering that 70% of the cost of unleaded petrol and 67% of the price of diesel in the UK goes on fuel duty and tax. Motoring organisations, such as the RAC, believe that the Government should consider cutting fuel excise duty if world prices hit a certain level. In the meantime, there are a number of ways we can try to cut our own fuel bills down.

Reduce your fuel usage

1. Make sure your car is regularly serviced and that your tyre pressures are correct. Under inflated tyres wear out more quickly and cost you around eight per cent more in fuel.
2. Ensure that you're buying fuel at the cheapest price possible by using FindCheapPetrol.com.
3. Drive smoothly and consistently as sharp braking and acceleration can increase fuel usage by up to ten per cent.
4. Don't carry unnecessary weight. If you're not using that roof rack, take it off and empty out the junk from the boot too, to reduce your fuel usage.
5. Do you really need to use the car? Walking or cycling could cover many short journeys and you'd benefit from getting fitter too.
6. Do you have two cars when you could really get away with one? Why not see if there's a Car Club in your area?
7. If you don't need the air conditioning, switch it off as it can add around ten per cent to your fuel costs.

So why not follow these tips; you could save some money on fuel and you even become fitter, too.

Find a cheaper motor insurance in our Insurance Centre.