Pump prices remain steady ahead of a festive period for drivers
Despite a minor increase in fuel prices during November, motorists are poised to benefit from the most affordable festive season at the pumps since the pandemic. Data from RAC Fuel Watch reveals that while prices have edged upwards, they remain significantly lower than this time last year.
Petrol rose by 1p over November to 136.5p per litre, with diesel increasing by nearly 2p to 142.25p. For drivers of 55-litre family cars, this translates to a £75 cost for petrol and £78 for diesel. However, when compared to December 2023, unleaded prices are down by 10.5p, saving drivers nearly £6 per tank. Diesel has dropped by 12p, offering a saving of £6.60 on a full refill.
Two-year comparisons reveal even more striking savings. Since late 2022, petrol prices have plummeted by 23.4p per litre, equating to £12.90 less per tank. Diesel has fallen even further, down 41.7p per litre, offering a £22.90 reduction on a full fill-up.
Supermarkets continue to offer the best deals, with petrol at the big four averaging 133.2p per litre – 3.3p below the national average. Diesel follows suit at 138.6p, 3.6p lower than the UK forecourt average. Regionally, Northern Ireland remains the cheapest place for fuel, with petrol at 130.6p and diesel at 135.2p per litre. England tops the price charts, with petrol averaging 136p and diesel 141.7p.
The slight rise in pump prices comes amid stable oil costs, which hovered around $73 a barrel throughout November, and a steady pound-to-dollar exchange rate at $1.28. Wholesale prices have shown little movement, yet concerns remain over retailers maintaining higher-than-normal profit margins. The Competition and Markets Authority reinforced this in its latest report, highlighting ongoing worries about limited competition and inflated margins.
With stable oil prices and no major currency fluctuations, drivers could see further price consistency in the lead-up to Christmas, providing a welcome reprieve at the pumps during the festive season.
Simon Williams, RAC Head of Policy, said: “Heading up to the most expensive time of year for families, it’s good to see that this Christmas is set to be the cheapest for fuel since the pandemic.
“Despite both petrol and diesel rising by a penny and two pence respectively in November, the difference to a year ago is considerable with petrol 10.5p lower and diesel 12p less. This is great news for people making long festive journeys to visit friends and families as it should save them around £6 on a tank of fuel compared to last year.
“While conditions are clearly better for drivers this Christmas than previous ones, we’re still conscious that prices at the pumps could be slightly cheaper if retailer margins were lower. So, it was disappointing to see last week that the Competition and Markets Authority has once again expressed concern about a lack of competition among fuel retailers. This comes on the back of the CMA concluding drivers were overcharged by £1.6bn in 2023.
“We hope the Government’s commitment at the Budget to introducing a mandatory fuel price finding scheme next year will spark competition and lead to a fairer fuel retailing landscape that delivers better value for drivers wherever they fill up.”
