Fuel falls 2p a litre in December reversing most of November’s rise

Oil drops to lowest monthly average price in five years

Image: Getty (all rights reserved)

Fuel prices fell by around 2p a litre in December, reversing some of the increases seen in November when unleaded went up more than 2p (2.2p) and diesel by almost 4p (3.8p), new data from RAC Fuel Watch shows.*

Petrol came down by 1.8p last month to 135.37p and diesel dropped 2.3p to 144.27p. This means both fuels finished 2025 about 1.5p lower than they began the year (petrol 136.85p and diesel 142.91p – 1 Jan 2025).

Throughout 2025 petrol has averaged 135.69p and diesel 142.96p which is 6.5p and 5.7p less than 2024 (2024 – 142.23p and 148.67p). Both fuels recorded year lows on 9 June, with petrol dipping to 132.03p and diesel to 138.14p.

Drivers choosing to refuel at a supermarket-operated forecourt saved themselves 3p a litre in December as unleaded sold for an average of 132.65p and diesel for 141.24p, both having come down 1.8p over the month. This equates to a saving of £1.50 a tank when filling up a 55-litre family car. A full tank of petrol at a supermarket costs £72.96, compared to the UK average cost of £74.45. The diesel equivalent is £77.68, versus £79.35.

Despite the slight downward shift in December, prices at the pumps haven’t followed the rate of fall seen in wholesale prices. Oil recorded its lowest monthly average price since January 2021 at $61.69, and at one point dipped below the $60-a-barrel mark, something which has not been seen since 8 February 2021.

In Northern Ireland the average price of a litre of petrol is currently almost 8p lower than across the whole of the UK at 127.5p and diesel is nearly 9.5p less at 134.9p, showing that drivers there get a better deal than those on the other side of the Irish Sea.

RAC head of policy Simon Williams said: “After prices at the pumps fell by 2p a litre in December drivers are starting the new year paying 1.5p less than they were a year ago.

“But with oil tumbling below $60 a barrel in mid-December and recording its lowest monthly price in six years, it's a shame drivers aren’t seeing even lower prices on forecourts up and down the UK. As wholesale fuel costs went below those that led to the cheapest prices of the year in June, we’d have hoped to see the year lows of 132p for petrol and 138p for diesel beaten.

“We hope that 2026 will see more competitive pump prices on the back of the Government’s fuel finder scheme going live at the start of February and increasing competition.”

Drivers looking to get the best prices on the country’s forecourts should download the myRAC app for free from the App Store or Google Play. Users, whether RAC members or not, can search up to five times a day for the cheapest fuel over a two, five or 10-mile radius. ​

The online RAC Fuel Watch resource has more information about the average price of petrol and diesel at the big four supermarkets and at motorway services. It also features graphs showing average prices since 2000.

Ends

Notes to Editors

* UK average pump prices quoted are based on Competition and Markets Authority data from 1-31 December 2025. Wholesale prices from 1-31 December.

** RAC Fuel Watch analysis shows unleaded rose by 3p a litre in April 2024, and diesel by 2p. Source: https://media.rac.co.uk/petrol-and-diesel-prices-rise-again-in-april-making-fuel-10p-a-litre-more-expensive-so-far-this-year-3321582

Share

Latest stories

Website preview
Amber warnings issued for Storm Goretti - RAC comment
Following Amber warnings for snow and strong wind issued by the Met Office this week, RAC breakdown spokesperson Alice Simpson said: “These relatively rare amber weather warnings for snow must be heeded by drivers. They're clear signs that disruption is likely across a large swathe of Wales and central England, and possible over a much greater area of the UK. People may want to consider avoiding driving overnight from Thursday into Friday or bringing journeys forward to avoid being stuck in the worst weather.
media.rac.co.uk
Website preview
Thousands of lives to be saved under bold new Road Safety Strategy - RAC reaction
Government announces its first Road Safety Strategy in over a decade, with a plan to reduce deaths and serious injuries on Britain’s roads by 65% by 2035
media.rac.co.uk
Website preview

Get updates in your mailbox

By clicking "Subscribe" I confirm I have read and agree to the Privacy Policy.

About RAC Media Centre

The RAC Media Centre provides journalists and news outlets with the latest motoring-related news, comment, data and research.

The RAC is an iconic UK brand, and provides complete peace of mind to 15 million UK private and business drivers - whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – and European breakdown assistance products, it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. Included in this is the first-of-its-kind nationwide Mobile Mechanics service which brings the garage to homes and workplaces. 

At the forefront of new solutions for business fleets and consumers, the RAC’s breakdown service is electric-ready with mobile EV charging technology and be called on using myRAC – its all-in-one route planner, fuel finder and breakdown reporting app

Contact

media.rac.co.uk