Christmas at the pumps set to be cheapest since the pandemic
Despite a slight rise at the pumps in November, drivers are on track to enjoy the cheapest Christmas at the pumps since the pandemic, according to new data from RAC Fuel Watch*.
Petrol went up by a penny to 136.5p over the month while diesel rose by nearly 2p (1.8p) to 142.25p, taking the cost of full tanks for 55-litre family cars to £75 for petrol and £78 for diesel.
But even though petrol has gone up almost 2p (1.7p) since the start of October, the price of unleaded is still 10.5p lower than the same time last year, saving drivers nearly £6 (£5.75) a tank. Diesel, which is up by 3p (2.8p) over the same period, is 12p cheaper than last year which translates to a saving of £6.60 for a complete fill-up. Compared to two years ago – nine months after the price of oil rocketed due to Russia invading Ukraine – the savings are even greater as petrol then averaged 159.9p (23.4p or £12.90 less) and diesel 183.9p (41.7p or £22.90 less).
At the end of November 2024, a litre of petrol bought at one of the big four supermarkets cost 133.2p – 3.3p cheaper than the UK average, while diesel was 138.6p – 3.6p less than the average price paid on UK forecourts.
Around the nations, prices at the end of the month were cheapest in Northern Ireland with petrol averaging 130.6p and diesel 135.2p – 6p and 7p less than the UK average. England was the most expensive with petrol at an average of 136p and diesel at 141.7p. Scotland and Wales were 134.5p and 134.9p for petrol and 140.6p and 140.2p for diesel.
While pump prices have risen a little in November, the cost of oil has remained broadly stable averaging $73 a barrel, which together with the pound still trading around the $1.28 mark, means there’s been little change in wholesale prices. However, retailer margins remain relatively high, a point reinforced by the Competition and Markets Authority last week in its interim monitoring report which stated that it was still concerned about a lack of competition and elevated margins compared to historic levels.
RAC head of policy Simon Williams 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.”
Ahead of all retailers being forced to share prices with the Government within 30 minutes of a price change, drivers can use the fuel finder feature in the free myRAC app which can help save money every time they fill up. The app, which can be downloaded for free from the App Store or Google Play, allows users to search over a two, five or 10-mile radius, with each search 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.
