European fuel prices rocket for holiday motorists

Taking the car on a ferry to Europe may look to be an attractive way to cut holiday costs. However, Post Office Travel Money’s fifth annual Motoring on the Continent report has revealed that UK holidaymakers could pay up to 35 per cent more for fuel in Europe than last summer because of pump price rises and the weaker UK pound.

The Post Office survey of fuel costs in 14 countries found that the falling value of sterling has made pump price rises in Europe even greater than in the UK. Compared with last year, UK prices have increased less (+11.5 per cent for unleaded petrol and +13.8 per cent for diesel) than in any of the other countries surveyed.

Most notably, Switzerland, once the lowest-priced holiday motoring country for fuel, costs a third more this year (33 per cent) for unleaded petrol and 35 per cent extra for diesel. A 20 per cent fall in sterling’s value against the Swiss franc accounts for much of the added cost because the underlying Swiss pump price increases - 5.3 per cent for unleaded petrol and 7.4 per cent for diesel - are much lower than in the UK.

This year’s Post Office report reveals that the days of the sub-£1 litre are long gone. Cheapest for the second year running, Luxembourg gets closest to this with a cost of £1.12 for a litre of diesel, although unleaded petrol costs 16p a litre more (£1.28). Motorists will also get more bang for their bucks in Spain where fuel costs just 2p more than Luxembourg for unleaded petrol (1.30), but 9p extra for diesel (£1.21).

Sarah Munro, Post Office Head of Travel Money said: "The high fuel price increases in Europe mean that UK holidaymakers should plan their routes carefully in advance to cut costs. For example, motorists driving through eastern France can save 27p a litre on unleaded petrol or 24p on diesel by detouring into Luxembourg. Similarly motorists can save up to 23p a litre by crossing from Switzerland into Austria."

The Post Office report reveals some good news for holiday motorists. Drivers in a diesel car can expect to pay significantly less in the eurozone - between 2p-28p less - than in the UK. Diesel costs around 13.5 per cent less in Spain, Europe’s best value destination according to the Post Office Holiday Costs Barometer, than in the UK.

However, pump prices continue to vary dramatically in the eurozone. Luxembourg will cost £58.28 less for 1,000 miles of motoring in a car using unleaded petrol than the Netherlands, highest-priced in the eurozone at £251.75. Motorists driving in Norway will pay most of all - £275.72 per 1,000 miles for unleaded petrol and £256.08 for diesel.

For this year’s Motoring on the Continent report, Post Office Travel Money conducted research among holidaymakers at Dover and Hull Ferry Ports to establish their views about driving in Europe. This revealed that women drivers worry more than men about the prospect of having an accident (60 per cent v. 52 per cent), breaking down (53 per cent v. 47 per cent) or running out of fuel (48 per cent v 38 per cent).

Sarah Munro said: "Our research showed that although many holidaymakers have done their homework and prepared for driving abroad, significant numbers had not checked basics like speed limits, road rules and drink/drive rules.

"With 48 per cent of women and 38 per cent of men worried about running out of fuel and not being able to find a petrol station, many people should bear in mind that not all petrol stations in Europe accept credit cards. It is therefore wise to carry some foreign currency purchased in the UK to avoid paying cross border fees and charges made for using overseas ATMs.

"Another safe and secure way to carry cash is on the Post Office Travel Money Card Plus, a chip and PIN-enabled MasterCard card - just launched and offering competitive rates."