Fuel cost cuts make Switzerland cheapest for motoring

Petrol prices are rising again — but not in Switzerland, which has regained the top spot in the annual American Express Foreign Exchange survey of fuel costs in Europe after prices at the pump plummeted by 15%. It was also the only country where the price of unleaded petrol has gone down in the past 12 months. The report showed a staggering cost differential of 41% between Switzerland and the most expensive country surveyed, Norway.

The 2005 survey, based on up to the minute June prices for unleaded petrol in 12 popular European motoring holiday destinations, also confirmed that the wide divergence in petrol prices noted in both the 2003 and 2004 American Express reports remains constant across the eight Euro Zone countries surveyed and continues to illustrate the inconsistency of euro pricing.

Euro petrol is at its cheapest in Spain, costing just 65p per litre — 1p more than in 2004 but 24p — or 27% - cheaper than in the most expensive euro country, Holland. Britons driving between neighbouring France and Switzerland will find that a litre of unleaded costs 26p more when they cross the border into France, which recorded the highest pump increase.

Commenting on the impact of petrol prices for Britons motoring in Europe, American Express Foreign Exchange Vice President, Europe, Katrina Harrison said: "It seems likely that there will again be a significant amount of last minute travel this summer and holidaymakers yet to decide on their destination can save money by choosing a motoring route that combines Switzerland and Austria. Closer to home, Ireland, always popular for touring holidays, looks to be a good choice as petrol prices there are currently 16p per litre cheaper than in the UK."

American Express Foreign Exchange also examined the cost of car hire through Hertz for the growing European fly/drive holiday sector. For the fourth year running Spain proved best value when combining car hire costs with petrol charges — £30 cheaper than France, which, despite recording the highest fuel price increase, stays in runner up position because of a drop in its car hire rates.

Although fuel costs rose in the majority of countries, American Express Foreign Exchange found that fly/drive costs grew less than expected because most car hire charges went down this year. This was most marked in the Scandinavian countries surveyed. Sweden and Norway closed the gap on the most expensive euro zone, Belgium, with car hire prices plummeting in Norway by 17% (£84) over the past two years.