Fuel prices over Christmas are on track for their lowest level since the pandemic, figures suggest.
Despite a slight rise at the pumps in November, petrol and diesel prices are significantly lower than the same time last year, according to new RAC analysis.
Although petrol went up by a penny in November to 136.5p, it’s still 10.5p lower than the same time last year, saving drivers nearly £6 (£5.75) a tank.
And while diesel rose by nearly 2p (1.8p) to 142.25p in November, it’s a whopping 12p cheaper than last year, which translates to a saving of £6.60 for a complete fill-up.
Compared to two years ago – nine months after the price of oil rocketed due to Russia invading Ukraine – the savings are even greater. Petrol then averaged 159.9p (23.4p more a litre and an extra £12.90 to fill a car up) and diesel 183.9p (41.7p higher and £22.90 more for a fill-up).
Supermarkets remain cheaper for fuel. At the end of November 2024, a litre of petrol bought at one of the ‘big four’ cost 133.2p on average – 3.3p cheaper than the UK average, while diesel was 138.6p – 3.6p less than the average price paid on UK forecourts.
Across the UK nations, Northern Ireland is still cheapest for fuel; prices at the end of November averaged 130.6p for petrol and 135.2p for diesel – 6p and 7p less than the UK average. England was the most expensive with petrol at an average of 136p and diesel at 141.7p. Scotland and Wales were 134.5p and 134.9p for petrol and 140.6p and 140.2p for diesel.
Stable oil prices bode well for the coming weeks. The cost of oil averages $73 a barrel which, together with the pound still trading around the $1.28 mark, means there’s been little change in wholesale prices.
But retailer margins remain relatively high, leaving drivers still paying over the odds for fuel; as noted last week by the Competition and Markets Authority, which stated that it was still concerned about a lack of competition and elevated margins compared to historic levels.
RAC head of policy Simon Williams said: “While conditions are clearly better for drivers this Christmas than previous ones, we’re still conscious that prices at the pumps could be slightly cheaper if retailer margins were lower. So, it was disappointing to see last week that the Competition and Markets Authority has once again expressed concern about a lack of competition among fuel retailers. This comes on the back of the CMA concluding drivers were overcharged by £1.6bn in 2023.
“We hope the Government’s commitment at the Budget to introducing a mandatory fuel price finding scheme next year will spark competition and lead to a fairer fuel retailing landscape that delivers better value for drivers wherever they fill up.”
The fuel price finder initiative, due to go live at the end of 2025, will require all retailers to share prices with the Government within 30 minutes of a price change. The scheme will give access to live, station-by-station fuel prices on phones or satnavs, driving greater competition.
The RAC can also help drivers save money on fuel now. The myRAC app, which can be downloaded for free from the App Store or Google Play, allows users to search over a two-, five- or 10-mile radius, with each search giving the five cheapest prices.
