Fuel Prices Drop 9p But Drivers Still Overpay £5 a Tank, Says RAC
December saw petrol prices fall by 9p per litre, saving drivers around £5 for a full tank. But the RAC warns this isn’t nearly enough. Wholesale fuel costs plunged much further, yet pump prices barely budged.
Petrol and Diesel Prices Dip
- Average petrol price dropped 8.4p to 151.06p per litre – a £4.63 saving for a typical 55-litre family tank.
- Diesel tumbled 9.4p to 173.97p, cutting fill-ups by £5.19.
- Big supermarkets shaved unleaded by 10p (to 147.76p) and diesel by 11.4p (to 170.23p).
Despite wholesale prices holding steady at around 106p for petrol and 123.4p for diesel in December, the RAC says retail prices should be even cheaper. They estimate petrol should be under 140p and diesel near 160p – savings of 11p and 14p respectively.
Costco Offers Biggest Fuel Bargains
Costco continues to undercut rivals, charging just 137.3p for unleaded and 158.4p for diesel. Members fill their tanks for roughly £7.50 and £8.50 less than average, making it the UK’s cheapest fuel spot.
RAC Calls Out Retailers for Price Gouging
“December looks good on the surface with 9p off, but drivers deserved a bigger cut given wholesale prices,” said RAC fuel spokesman Simon Williams. “Big supermarkets have cut prices by 10p collectively, but that’s nowhere near enough. We hope the Business Secretary’s recent intervention will push retailers to slash prices more fairly.”
Williams points to Northern Ireland as proof cheaper fuel is possible. Petrol there dropped nearly 7p below the UK average in December, with diesel 9.5p cheaper.
“If fuel can be sold this cheaply in Northern Ireland, something’s clearly wrong with mainland UK fuel retailing,” Williams added.
The reasons Northern Ireland enjoys lower prices include more fuel stations per driver, competition from cross-border Irish fuel, and less supermarket dominance (28% market share vs 43% on mainland UK).
UK Regions See Mixed Price Drops
AreaUnleaded Price 01/12 (p)Unleaded Price 31/12 (p)Change (p) UK Average159.47151.06-8.41 Northern Ireland155.02144.43-10.59 North West159.16149.61-9.55 Scotland158.00147.81-10.19 South East160.57153.03-7.54
Diesel Prices Fall Across UK
AreaDiesel Price 01/12 (p)Diesel Price 31/12 (p)Change (p) UK Average183.40173.97-9.43 Northern Ireland176.24164.55-11.69 North East182.80171.23-11.57 Wales181.36169.91-11.45 South East184.97176.30-8.67
UK Fuel Cost Among Highest in Europe
Across Europe, unleaded averages 144p and diesel 152p per litre. In France, it’s 146p and 154p respectively. Yet, the UK ranks with the second most expensive diesel and sixth priciest petrol across the EU.
Drivers continue to pay over the odds, while calls grow louder for retailers to pass on wholesale savings and ease the pinch at the pumps.
