UK Fuel Prices Hit Four-Month Climb – Drivers Feeling the Pinch
Fuel Costs Keep Rising: Petrol and Diesel Prices Surge
UK drivers are being hit with fuel price hikes for the fourth straight month, with petrol and diesel costs inching up again, reveals new data from the RAC.
- Since October 2024, petrol prices have shot up by 5p per litre.
- Diesel prices climbed 6p per litre over the same period.
- By the end of January 2025, average prices hit 139.0p per litre for petrol and 145.7p for diesel.
The jump is linked to a mid-January spike pushing oil above $80 a barrel, combined with a weaker pound making imports pricier for UK retailers.
RAC Sounds Alarm: Filling Up Costs Nearly £3 More
Simon Williams, head of policy at RAC, warns drivers are feeling the burn.
“It’s not been a good start to 2025 for drivers at the pumps with prices going up for the fourth month in a row.”
Williams adds:
“Filling up your tank now costs nearly £3 more than it did in early October. The oil market is famously volatile, but some experts say we could see prices drop to around $70 per barrel, which might finally bring relief.”
CMA Flags Danger: Drivers Overpaying Due to Weak Competition
The Competition and Markets Authority (CMA) warns motorists are shelling out more than necessary, with fuel retailers charging high margins thanks to weakened competition.
- Supermarket fuel margins rose from 7% in April to 8.1% in August 2024.
- Margins outside supermarkets jumped even higher – from 7.8% to a hefty 10.2% over the same period.
Dan Turnbull, CMA’s senior director of markets, hit out:
“While fuel prices have fallen since July, drivers are still paying more than they should due to stubbornly high margins.”
“We remain concerned about weak competition in the sector and its impact on pump prices.”
What’s Next? Calls for Transparency and Competition
The CMA urges the government to crack down with measures for greater price transparency, helping drivers find the cheapest fuel near them, and push for more competition to bring prices down.
With global oil markets uncertain, petrol and diesel prices remain volatile. But if oil prices stabilise lower, drivers may finally catch a break.
For now, experts advise motorists to shop around and watch for possible government moves targeting fuel market fairness.
Stay tuned – this fuel price saga is far from over.
