Slide 1

Petrol Head IndexA measure of motoring related goods, services & expenditures taken from the ONS Consumer Price Index. The Petrol Head Index (PHI) includes the following 7 CPI indices which are weighted accordingly:

07.1 Purchase of vehicles

07.1.1 A New cars

07.1.1 B Second –hand cars

07.2 Operation of personal transport equipment

07.2.1 Spare parts & accessories

07.2.2 Fuels & lubricants (includes petrol & diesel)

07.2.3 Maintenance & Repairs

07.2.4 Other services Inflation (e.g. car wash, parking charges MoT fees etc)

12.5 Insurance

12.5.4 Transport insurance

The Petrol Head Index has recorded more extreme rates of inflation / deflation than the UK’s CPI Index

Consumer Price Index (CPI) has been flat since 2014 while the Petrol Head Index has been falling

Prices of spare parts & accessories & 2nd hand car prices fall in 2015. New car prices / repair & maintenance fees rise

Motor fuel in its 4th year of declines while ‘other services’ prices rise in each of the last 20yrs. Insurance +10% in 2016

Transport insurance & motor fuel (petrol & diesel costs) moving in different directions

The annual fuel costs of running a Nissan Qashqai have been fallen from almost £1,400 (diesel) to £1,000

Nissan Qashqai drivers are into their 4th year of falling fuel costs with a £369/379 cumulative gain so far

The more you drive the more you save!

Average weekly petrol prices have risen by over 6% since the start of the year

Average weekly diesel prices have accelerated by over 8% since their low in February

Rising petrol and diesel prices suggest further increases in the Petrol Head Index can be expected

Brent crude oil price (in £) up almost 1/3rd since the start of 2016…more petrol price rises in the pipeline

Interest rates for car loans remain close to record lows

Second hand car prices fell at their fastest rate in 7 years (-5.6%) in 2015 with new car prices up 2% y/y

UK new car price inflation eases from 1.1% y/y in March to 0.3% in April. 2nd hand car prices fall by 6.9% in April

Spare parts & accessories posted their first annual decline last year since 2001. Cost of servicing & repairs post rise

Productivity puzzle? Improved fuel consumption due to improved efficiency & downsizing in car / engine size

Slide 20

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