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WHAT’S DRIVING THE RISE? UK fuel prices rise again as petrol and diesel costs climb for fourth month

Perry Richardson


Petrol and diesel prices have increased for the fourth consecutive month, with unleaded now 5p per litre higher than in October and diesel up by 6p, according to the latest RAC Fuel Watch data.


January saw petrol rise by 2p per litre to an average of 139p, up from 136.9p at the start of the year. Diesel increased nearly 3p, reaching 145.7p from 142.9p. A full 55-litre tank of petrol now costs over £2 more than it did four months ago, while diesel has risen by more than £3.

The RAC attributes the price hikes to a mid-month increase in global oil prices, which pushed the cost of a barrel above $80 for several days. A weaker pound has also contributed, making wholesale fuel imports more expensive.


Supermarkets followed the trend, with unleaded rising by 1.6p to 134p per litre and diesel up almost 2p to 141.6p. Despite the increases, supermarket fuel remains cheaper than the UK average, with petrol 3.5p lower and diesel 4p less.

Motorway service stations recorded steeper rises, with petrol climbing by 3.5p to 161.9p per litre. Diesel is now at 169.83p per litre.


Across the UK, England has the highest average petrol price at 138.5p per litre, followed by Wales at 137.3p, Scotland at 136.9p, and Northern Ireland at 133.1p. Diesel is also most expensive in England at 145.2p, with Scotland at 143.9p, Wales at 143.4p, and Northern Ireland the cheapest at 137.9p.

With continued pressure on oil prices and currency fluctuations, there is no immediate sign of relief at the pumps.


RAC Head of Policy, Simon Williams, said: “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. Sadly, filling up is now nearly £3 more expensive than it was at the start of October.


“We hope this trend won’t continue and that prices drop back down again. Much, of course, depends on global oil supply and demand. While the price of oil can be notoriously volatile, there’s reason to think forecourt fuel prices may get cheaper in the coming months as some analysts are predicting an average oil price nearer to $70 this year.”


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