Fuel prices in the UK are falling faster than at any other time this year, with unleaded petrol and diesel dropping nearly 7p per litre in just a month, according to RAC Fuel Watch. As of September 19, the average price for unleaded is 136.15p per litre, down 5p since the start of the month, saving drivers about £4 on a full tank. Diesel has seen a similar drop, with prices down to 140.87p on average, a decrease of nearly 7p over the past month. Both petrol and diesel are now at their lowest prices in nearly three years.
The last time prices fell this quickly was at the end of 2023, but even then, prices were much higher than they are now. Drivers can find even lower prices at supermarkets, where unleaded averages 133.23p and diesel 137.69p. In Northern Ireland, where pump prices are considered the fairest, petrol is just 131.5p and diesel 134.2p.
The RAC expects prices to continue falling through the end of September, potentially reaching a three-year low, with petrol dropping to 132p and diesel to 138p. This price decrease is due to a combination of lower global demand for oil, which is trading at around $73 per barrel, and a stronger British pound, aided by a drop in inflation.
RAC spokesperson Simon Williams said “It’s really encouraging to see pump prices coming down so rapidly, which we know is as good for drivers’ wallets as it is for keeping the headline level of inflation in check.
“Of course, global oil prices and even the strength of the pound can fluctuate wildly and that’s something completely out of drivers’ control. But with the cost of filling up making up a sizeable chunk of many households’ overall monthly spending, it makes sense to stretch every pound spent on fuel as far as possible. Driving efficiently – for instance, with a ‘light right foot’ and by changing up to as high a gear as possible – is the best way to do this, along with paying less to fill up in the first place.
“Based on wholesale pump prices, which is what retailers pay to buy the fuel in the first place, we know there’s scope for further price cuts so we very much hope that within the next few weeks, we’ll see pump prices reach their lowest levels in three years. And, as our analysis clearly shows, it’s drivers in Northern Ireland who continue to get the best value with pump prices there between 5.5p and 6p cheaper per litre compared to the average across the whole of the UK.
“We continue to look forward to the new Government proceeding with its plans to introduce greater pump price transparency with the Pumpwatch scheme, along with an official monitoring function that can help ensure drivers are charged a fair price every time they fill up.”
