Petrol Prices Inch Back Up After Three-Month Slump
After tumbling for three months straight, petrol prices have bottomed out at 148.35p per litre at the end of January—and are now starting to creep back up, reveals the latest RAC Fuel Watch data.
Unleaded Hits Highest Level Since Pre-Ukraine Invasion
Unleaded closed January at 148.89p, down 3p since the start of the month. It even dropped as low as 151.85p mid-month. This is the most drivers have paid since February 2022, just before Russia’s invasion of Ukraine sent fuel costs soaring.
Diesel prices plummeted 4p per litre, from 174.37p to 170.37p—the cheapest since March 2022. Filling up a diesel tank now costs £93.70, a £2.20 saving on January. Petrol drivers pay £81.89 per tank, down £1.63.
Big Four Supermarkets Undercut the Rest
Pump prices at the UK’s big four supermarkets were around 3p cheaper per litre for both fuels. Petrol averaged 145.71p (down 2.25p), diesel 167.49p (down 2.25p to 2.79p). Asda led the pack with petrol at 144.61p and diesel at 166.09p, both down by a few pence.
RAC Warns: Prices Could Spike Again
“Although January saw fuel prices fall for the third month in a row, there is now more cause for concern than celebration as petrol has already begun to creep back up very slightly,” said RAC fuel spokesman Simon Williams.
“Monthly cuts of 3p for petrol and 4p for diesel were welcome, but wholesale prices rose by 2p for petrol and 3p for diesel in January. While unleaded has been overpriced thanks to retailers holding firm, diesel remains too costly even with the slight wholesale hike.”
“Oil prices are the big driver. The barrel is hanging above $80, and with China reopening after zero-Covid, experts predict prices could hit $90. That could push petrol back to 155p per litre. Plus, the Chancellor faces scrutiny in the Spring Budget—let’s hope he doesn’t stoke inflation by hiking fuel duty.”
“For now, the big four supermarkets haven’t raised prices despite wholesale cost rises, which is good news for drivers. We urge them to keep prices steady unless wholesale forces their hand.”
“Recent wholesale price drops exposed stark local pricing gaps. Smaller retailers often passed on savings, while supermarket prices stayed stubbornly high, hitting areas with little competition hardest.”
“At January’s end, fuel was cheapest in the North West, North East, Wales, and Scotland. Northern Ireland remains an outlier, with prices about 4p per litre cheaper than the UK average for various reasons.”
