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Drivers warned to expect an expensive Christmas at the pumps as fuel prices rise fastest in 18 months

By Jodie Chay Oneill | December 4, 2025

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Fuel prices are climbing fast, with petrol and diesel at their highest in months. Drivers face a pricier Christmas at the pumps.

Drivers warned to expect an expensive Christmas at the pumps as fuel prices rise fastest in 18 months

Motorists are facing the highest petrol and diesel prices in eight months, with analysts warning that costs are climbing at the quickest pace since early 2024.

RAC Fuel Watch data shows petrol rose by 2.17p in November, taking the average price to 137.17p per litre – the highest since mid-March. Diesel jumped even more, increasing 3.84p to 146.57p per litre, the most expensive it’s been since August 2024.

The RAC says drivers should prepare for a “costly Christmas”, with prices steeper than last year despite the Chancellor freezing fuel duty for the 15th year in a row and extending the temporary 5p cut. However, Rachel Reeves has confirmed the 52.95p-per-litre duty will rise gradually from September and return to 57.95p by March 2027.

Supermarket fuel also became more expensive in November, though it remains cheaper than the national average. Unleaded at supermarkets is now 134.48p per litre, while diesel is 143.08p. The increases mean filling a typical petrol car now costs £75.44 – £1.19 more than at the end of October. A full diesel tank averages £80.61, up £2.11.

Drivers in Northern Ireland continue to benefit from lower prices, with unleaded at 129.6p and diesel at 137.7p per litre.

A tougher Christmas for households

Fuel prices are higher than this time last year – petrol by around 0.5p per litre and diesel by more than 4p. RAC head of policy Simon Williams said motorists will be frustrated: “Many of us travel long distances over Christmas, so sharp price rises now make it even more expensive to see family and friends.”

Asda, known for sparking fuel price competition in previous years, is offering 3p off per litre at its Express stores in December for customers who spend £15 or more on groceries.

What’s next for fuel duty?

In the Autumn Budget, the Chancellor confirmed fuel duty will start rising next September, ending the temporary 5p cut introduced in 2022. Duty will then gradually return to 57.95p per litre by March 2027.

However, not all planned increases will go ahead. A fuel duty rise in line with inflation in 2026–27 has been cancelled.

The Government will also force fuel retailers to publish real-time prices from spring 2025 through a new “Fuel Finder” tool. Rachel Reeves said the move will help drivers find the cheapest pumps, stamp out unfair pricing and save the average household £40 a year.

Overall, the measures announced in the Budget are expected to save families around £89 next year compared with previous plans.

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