Pump prices fall fractionally in August despite wholesale stability
- Perry Richardson
- Sep 4
- 2 min read
Fuel prices dropped by less than a penny per litre in August, according to new analysis by RAC Fuel Watch, halting a two-month run of increases.
The average price of unleaded petrol fell by just 0.39p to 134.64p per litre. Diesel saw a slightly greater drop of 0.72p, closing the month at 142.2p per litre. Supermarkets made similar marginal changes, cutting unleaded by 0.23p and diesel by 0.3p.
These modest reductions mean drivers are now paying around £74.05 to fill a 55-litre petrol vehicle. Diesel drivers face an average cost of £78.21. Supermarket forecourts remain cheaper, offering around £2 in savings per full tank.
Despite wholesale oil prices remaining broadly flat during August, the RAC says pump prices continue to outpace what they should be. The Competition and Markets Authority (CMA) has also highlighted weak competition in the retail fuel market, pointing to sustained profit margins and limited downward pressure on prices.
The fuel duty cut of 5p per litre introduced by the Government continues to have limited visible effect at the pumps.
Price disparities across the UK are also drawing attention. Northern Ireland drivers are paying an average of 127.9p for petrol and 134.5p for diesel, significantly undercutting the UK average. Costco, operating on a membership model, is charging even less with petrol at 125.9p and diesel at 133.7p per litre.
Forecourt data from the RAC reveals some of the lowest pump prices found at independent sites. In Leighton Buzzard, Bedfordshire, petrol was available for 126.7p per litre. In Devon, a forecourt in Bovey Tracey offered both petrol and diesel well below national averages at 126.9p and 131.9p respectively.
Simon Williams, RAC head of policy, said: “While it’s good news that two months of rising fuel prices have come to an end, it’s disappointing that high retailer margins are preventing drivers from benefitting from lower prices.
“The Competition and Markets Authority’s latest report confirms that retailer margins are far higher than they were historically, and that competition remains weak. Our analysis of pricing data confirms the latter, with just a handful of forecourts appearing to compete heavily on price, with the exception of those in Northern Ireland where drivers enjoy far cheaper fill-ups than in any other corner of the UK. This is no doubt a source of ongoing frustration for many of the nation’s motorists.
“We hope that greater transparency of fuel prices from the end of this year means that a spotlight is shone on both those forecourts that charge the fairest prices and indeed, those that sell petrol and diesel for far higher amounts.”
