Fuel still at three-year low despite brief oil price jump in October
Despite a brief spike in the cost of oil due to tensions in the Middle East in early October, fuel prices remain at a three-year low, new data from RAC Fuel Watch* shows.
The average price of petrol on the country’s forecourts is now 135.2p – up just a third of a pence on September, meaning the cost of filling up a 55-litre family car is £74.40.
Diesel rose by two-thirds of a pence to 140.2p, taking the cost of a tank for a family car to just over £77. UK diesel is the most expensive in Europe, a dubious distinction that has been the case for 21 of the last 27 weeks.
Filling up at a supermarket can currently save drivers 3p a litre, or nearly £2 a tank. The average price of unleaded bought at one of the 1,487 supermarket forecourts is 132p and diesel is 136.8p.
In Northern Ireland, however, petrol is currently averaging 130.4p and diesel 134.1p – 5p and 6p less than the UK averages for both fuels, and 2p cheaper than the average price at a supermarket. Meanwhile, unleaded at membership-only retailer Costco’s 20 stores in England and Scotland is 127p a litre and diesel is 131.7p – more than 8p less than the UK averages.
RAC head of policy Simon Williams said: “Despite the price of oil briefly jumping up to around $80 a barrel in the early part of October due to increased tensions in the Middle East, prices at the pumps have fortunately remained stable at a three-year low.
“This is yet more good news for drivers following the Chancellor’s extension of the 5p duty cut at her first Budget last week. But it’s also worth remembering that even now 55% of the total price of a litre of fuel is tax in the form of fuel duty, and the VAT that is charged on top.
“With prices still at least 5p a litre cheaper in Northern Ireland than the UK average, it was also positive to see at the Budget that the Government aims to allow the Competition and Markets Authority to use its statutory powers to monitor competition in the road fuels retail market in just two months’ time. The Government has also acknowledged, as the RAC has been advocating for some time, that ‘this function will be crucial in providing ongoing scrutiny of prices and considering whether further action may be needed to protect consumers’.
“Also, by the end of 2025 the Government’s ‘Fuel Finder’ scheme will come into force obliging every retailer to report their prices to a central database within 30 minutes of a change being made. It’s worth remembering that the RAC is already giving drivers the chance to find the cheapest fuel near them via the myRAC app .
“We hope the Government’s actions will ensure drivers get a fairer deal every time they fill up.”
The fuel finder feature in the free myRAC app can help drivers save money every time they fill up. The app, which can be downloaded for free from the App Store or Google Play, offers up to nine searches a day can over a two, five or 10-mile radius, with each giving the five cheapest prices.
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 as well as a daily financial breakdown of the cost of a litre of petrol and diesel.
