Drivers across the UK are set to benefit from the cheapest Christmas fuel prices since the pandemic, despite a slight rise in pump costs during November, according to data from RAC Fuel Watch.
Last month, petrol prices increased by 1p to an average of 136.5p per litre, while diesel rose by nearly 2p (1.8p) to 142.25p per litre. This brings the cost of filling a typical 55-litre family car to £75 for petrol and £78 for diesel.
However, the bigger picture remains positive. Petrol prices are 10.5p lower than this time last year, translating to a saving of nearly £6 (£5.75) for a full tank. Diesel is 12p cheaper, offering drivers a saving of £6.60 per fill-up. Compared to December 2022, the savings are even more substantial – petrol is 23.4p lower than two years ago, saving drivers £12.90 per tank, while diesel costs 41.7p less, a whopping £22.90 saved on a full tank.
Regional Price Variations
Fuel prices vary significantly across the UK:
- Northern Ireland remains the most affordable region, with petrol averaging 130.6p and diesel 135.2p, both 6p-7p lower than the UK average.
- England is the most expensive, with petrol at 136p and diesel at 141.7p.
- Prices in Scotland and Wales are mid-range, with petrol at 134.5p and 134.9p, and diesel at 140.6p and 140.2p, respectively.
Supermarkets continue to offer savings, with petrol priced 3.3p cheaper and diesel 3.6p lower than average forecourt prices.
Stable Oil Prices and Concerns About Retail Margins
The relatively low pump prices are attributed to stable oil costs, which averaged $73 per barrel in November, and a steady pound-to-dollar exchange rate of around $1.28. Wholesale prices have seen little fluctuation, but the Competition and Markets Authority (CMA) remains concerned about elevated retailer margins. Last week, the CMA reiterated its findings that a lack of competition has led to drivers being overcharged by £1.6 billion in 2023.
RAC Reaction and Future Changes
Simon Williams, Head of Policy at RAC, commented on the outlook for drivers this Christmas:
“Despite slight rises in petrol and diesel prices in November, this Christmas offers substantial savings compared to last year, with petrol down by 10.5p and diesel by 12p. Drivers making long festive journeys to visit loved ones can save around £6 per tank.”
Williams also emphasized the need for improved competition in fuel retailing:
“While conditions are better this year, prices could still be lower if retailer margins were fairer. We welcome the Government’s upcoming mandatory fuel price reporting scheme, which aims to foster competition and deliver better value for drivers.”
Tools for Savvy Drivers
The RAC has encouraged motorists to use tools like the myRAC app, which features a fuel price finder to locate the cheapest fuel within a 10-mile radius. The app is free to download and can help drivers save money on every fill-up.
For more detailed information on fuel prices, trends, and breakdowns, visit the RAC Fuel Watch online resource.
This festive season, lower fuel prices are a welcome relief for families, offering savings on long holiday journeys and making Christmas travel more affordable.
