Fuel prices rocketed in February on the back of the rising cost of oil.
The average price of petrol rose by 4p a litre in February while diesel shot up by nearly 5p, the RAC – a partner at next month’s Great British Fleet Event – has revealed.
Published ahead of tomorrow’s Spring Budget – where the Chancellor is expected to continue the fuel duty freeze – the data shows unleaded went up from 140.75p at the start of the month to 144.76p by the close, adding more than £2 to the price of a full tank (£77.41 to £79.62).
Diesel jumped from 148.53p to 153.22p (4.7p), increasing the cost of filling up an average 55-litre family car by £2.60 to £84.27.
RAC fuel spokesman Simon Williams commented: “Our data shows that in February, drivers endured the highest monthly average fuel price increases since September 2023. What’s more diesel’s 4.7p rise was the 14th largest since the year 2000 and the 4p that went on to petrol was the 17th biggest increase since the start of the century.”
The hikes are due to the price of oil breaking through the $80 a barrel mark on 8 February and staying there for the rest of the month. This, combined with the pound only being worth $1.26, meant retailers had to pay more for fuel on the wholesale market as – similar to oil – fuel is traded in dollars.
The RAC – which continues to lobby for fairer fuel pricing practices from retailers – said the rises were particularly “galling” as the price gap between Northern Ireland and the rest of the UK remains. On average fuel is 5p cheaper there, with “big retailers appearing happy to operate on thinner margins per litre”.
Williams added: “Looking at average margins across the whole of the UK, retailers are currently taking around 10p a litre on average across both petrol and diesel. The supermarkets in particular have now noticeably upped their margins to 8p a litre compared to 6p in 2019. Luckily for drivers, this is lower than the last two years when it was around 9.5p.”
The data also shows a £10-a-tank difference between filling up at the cheapest and most expensive supermarket sites.
“When analysing the supermarkets’ prices via the Competition and Markets Authority open data scheme, it is also very clear there are some big differences between the cheapest and most expensive prices charged for both petrol and diesel.
“Frighteningly, at the end of February there was an 18p difference between the country’s cheapest supermarket unleaded and the dearest, and for diesel it was 21p. To put this into a context, it means the cost of filling a family-sized car can be up to £10 more expensive in one part of the country than another. It’s important to remember this is the very same product being charged at vastly different prices based just on location.
“We hope that the eventual introduction of the monitoring body recommended by the Competition and Markets Authority will help to bring an end to this postcode lottery that treats drivers so unfairly.”
