Good news for drivers this festive season—fuel prices are at their lowest since the pandemic, even with a slight uptick last month, according to the RAC Fuel Watch. The average UK price of petrol rose by just 1p in November to 136.5p per litre, but it remains 10.5p cheaper than this time last year. Diesel followed a similar trend, increasing by 1.8p to 142.25p, yet still costs 12p less than it did a year ago.
For those driving a 55-litre family car, the savings are clear. A full tank of petrol now costs £75, which is £5.75 less than a year ago, while a tank of diesel costs £78, saving drivers £6.60. When compared to two years ago—when oil prices surged after Russia’s invasion of Ukraine—the savings are even more striking. Petrol is now 23.4p per litre cheaper, translating to £12.90 less per tank, while diesel has dropped by 41.7p per litre, saving £22.90 per tank.
Fuel prices vary significantly across the UK. Northern Ireland currently has the cheapest rates, with petrol averaging 130.6p per litre and diesel at 135.2p. In contrast, drivers in England are paying the most, with petrol priced at 136p and diesel at 141.7p. Scotland and Wales fall somewhere in between, with prices hovering around 134.5p for petrol and 140p for diesel. Supermarkets also continue to offer better deals, typically pricing their fuel 3-4p cheaper than the national average.
Despite relatively stable oil prices, averaging $73 a barrel in November, drivers are still paying more than they should, according to the Competition and Markets Authority (CMA). The watchdog recently expressed concerns over stubbornly high-profit margins among fuel retailers, which have increased significantly this year. Supermarket margins rose from 7% in April to 8.1% by August, while non-supermarket margins jumped from 7.8% to 10.2% during the same period.
Simon Williams, head of policy at the RAC, said, “Heading up to the most expensive time of year for families, it’s good to see that this Christmas is set to be the cheapest for fuel since the pandemic.
“Despite both petrol and diesel rising by a penny and two pence respectively in November, the difference to a year ago is considerable with petrol 10.5p lower and diesel 12p less. This is great news for people making long festive journeys to visit friends and families as it should save them around £6 on a tank of fuel compared to last year.
“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.”
For now, drivers can enjoy the benefit of lower prices, making long festive journeys to visit family and friends slightly more affordable this holiday season.
