The cost of driving abroad on holiday this summer for Brits has been revealed – and it’s Cyprus that’s the cheapest destination for both petrol and car hire.
A study looked at the price of unleaded, diesel and renting a car, including insurance that reduces excess charges to zero, at 20 destinations across Europe.
Norway came out as the most expensive for both diesel and unleaded while Ireland was named as the priciest for car hire.
The cost of driving abroad on holiday this year has been revealed with Cyprus the cheapest destination for both petrol and car hire
The research was carried out by Post Office Travel Money as part of its annual Motoring on the Continent Report.
It found the price of unleaded petrol in Cyprus is 98p per litre, an 11.7 per cent drop on last year’s pump price.
Five other countries – Luxembourg (£1.09), Austria (£1.10), Belgium (£1.32), Greece (£1.43) and Italy (£1.50) – also registered year-on-year falls of between one and five pence per litre despite the recent drop in sterling’s value.
With the exception of Sweden (£1.38, +15 per cent), Croatia (£1.32, +12.8 per cent), Germany (£1.43, +7.5 per cent) and Slovenia (£1.21, +7.1 per cent), prices in the other countries surveyed were either on par with 2018 or rises were no greater than 2.4 per cent (£1.28, Switzerland).
Diesel motorists, meanwhile, will get a sub-£1 litre in both Luxembourg (96p) and Andorra (97p).
Prices are down 4p a litre at the pumps in Luxembourg (-4 per cent) but the biggest price falls of 5p are in Austria (£1.02, -4.7 per cent) and Cyprus (£1.06, -4.5 per cent).
Diesel prices in most other countries have either fallen, risen marginally or remain on par with 2018.
However, prices have surged by 18p a litre in Sweden – a rise of 15.3 per cent.
Diesel remains cheaper than unleaded petrol in 80 per cent of the countries surveyed and motorists in a diesel car will save as much as 32p a litre in the Netherlands where this costs £1.28 compared with £1.60 for unleaded.
Exceptions to the rule are Belgium (+3p), UK (+5p), Switzerland (+6p) and Cyprus (+8p), where diesel is more expensive than unleaded petrol.
In France and Spain, the most popular places to drive, prices are roughly on par with last year.
In a poll for the report, 46 per cent of participants said that they have driven or will drive in France this year, while 39 per cent have driven or will drive in Spain.
An infographic showing the cost per litre of unleaded petrol in 20 countries across Europe
Motorists will get a cheaper deal in Spain because unleaded petrol costs £1.19 – 22p less a litre than in France (£1.41) – while diesel costs 18p less – £1.12 in Spain compared with £1.30 in France.
Over 1,000 miles of motoring, that makes a difference of £32 for unleaded petrol and £27 for diesel fuel.
Post Office Travel Money also compared pump prices now with those charged in June 2016 at the time of the EU referendum and found double-digit percentage rises for both fuels in all the countries surveyed.
The cost of diesel per litre in 20 countries across Europe. The cheapest litre is in Luxembourg
The biggest price increase is in Greece where a litre of unleaded petrol has increased by 45p (43.3 per cent) and diesel has surged 55p (71.4 per cent) in the past three years.
The smallest unleaded petrol increase of 12p has been in Cyprus – a rise of 14 per cent – while diesel prices have risen least in percentage terms in the UK (+26p, +23.8 per cent).
Car hire – risk-takers could face an excess of trouble with holiday car hire in Europe
Turning to rental costs, Post Office Travel Money combined the cost of a week’s basic hire with two extras payable on arrival (zero per cent Excess Waiver Insurance and additional driver) and a tank of unleaded petrol (40 litres).
The best rate for Cyprus was £369 compared to Ireland, where it costs £651 – 76 per cent more.
Among the cheapest destinations for car hire are Brussels (£394.32), Palma in Majorca (£432.65) and Vienna (£452.59). The most expensive places for renting a car are Nice (£609.72), Zurich (£594.98) and Corfu (£581.61).
Post Office Travel Money also found that holidaymakers hiring cars in Europe risk excess charges of up to £1,434 if they have a crash or the vehicle is stolen.
Yet the research reveals that half of motorists who hire cars fail to take out Excess Waiver Insurance (EWI) that will reduce their excess to zero in the event of damage to the car. Only a third cover themselves against tyre, undercarriage and window damage.
Research into the excess charges levied by rental companies in the 13 countries where UK tourists are most likely to pick up hire cars found that holiday prangs could cost those without the zero per cent EWI between £534 in Corfu (hiring from Corfu International Airport) and £1,434 in Switzerland (hiring from Zurich Airport).
A number of other destinations carry high excess charges for holidaymakers who have an accident.
Renting a car from Malaga Airport in Spain and Faro Airport in Portugal means drivers stand to pay £872 and £974 respectively, while Ireland (Dublin Airport – £1,357) and Italy (Pisa Airport – £1,409) join Switzerland in charging the highest excess.
A table showing the cost of car hire in 13 destinations across Europe. Cyprus is cheapest and Ireland the most expensive
Yet, the Post Office found that the cost of zero per cent EWI and tyre, undercarriage and window insurance is a small proportion of the potential excess charge payable for damage or loss.
In all three countries charging the highest excess, that insurance is a fraction of the cost.
In Switzerland the extra insurance costs an average of £120 – eight per cent of the potential excess charge. While in Italy holidaymakers can expect to pay around £205 – 15.6 per cent of the possible penalty – and in Ireland the £139 cost is just 10 per cent of the excess charge.
The problem, says the Post Office, is that while attractive ‘headline’ rates offered for a week’s car rental are tempting, the cost of adding zero per cent excess insurance and a second driver virtually doubles the price in most countries.
In Belgium (Brussels Airport) a basic £157 hire cost rises to £394 when the extras are added.
Remember that many extras must be paid in local currency when collecting the hire car. Change pounds into foreign currency before leaving home to cover this cost rather than incur charges for paying on plastic
Nick Boden, head of Post Office Travel Money
Prices double in Cyprus, Austria, Germany, the Netherlands, Spain, Italy and France too.
Nick Boden, head of Post Office Travel Money, said: ‘It is good news that fuel prices in most European countries are either cheaper or roughly the same as last year.
‘However, they continue to vary significantly between countries so it will make sense for holiday motorists to plan routes carefully to cut costs.
‘By doing their homework, motorists driving south from the UK to the French Riviera or Italy can save 32p a litre on unleaded by taking a pit stop in Luxembourg where pump prices are state-controlled.
‘Similarly, they can save 18p a litre on unleaded and 32p on diesel on lakes and mountains touring trips by crossing from Switzerland to Austria.
‘Don’t leave it until you get to your destination to find out how much the hire car is really going to cost.
‘Calculate the cost you will pay by doing some homework before leaving home to find out the realistic price of renting a car and budget accordingly.
‘Remember that many extras must be paid in local currency when collecting the hire car. Change pounds into foreign currency before leaving home to cover this cost rather than incur charges for paying on plastic.’