The cost of petrol and diesel rose in November but remains dramatically lower than a year ago
Despite a slight increase in November, drivers are expected to benefit from the lowest Christmas fuel prices since the pandemic began, according to recent figures. The RAC Fuel Watch data shows that petrol prices rose by a penny to 136.5p per litre in November, but this is still 10.5p cheaper than the same time last year.
Diesel increased by 1.8p to 142.25p, yet it remained 12p cheaper than a year ago. These prices mean that filling up a 55-litre family car will cost £75 for petrol and £78 for diesel, which is £5.75 and £6.60 less respectively than the previous year.
Compared to two years ago, nine months after the price of oil surged due to Russia’s invasion of Ukraine, petrol is now 23.4p or £12.90 a tank cheaper, while diesel is 41.7p or £22.90 a tank less expensive. As of the end of November, a litre of petrol purchased at one of the big four supermarkets was 133.2p, 3.3p cheaper than the UK average, while diesel was 138.6p, 3.6p less than the average price on UK forecourts, as reported by the RAC.
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At the end of the month, the cheapest prices were found in Northern Ireland, with petrol averaging 130.6p and diesel 135.2p – 6p and 7p less than the UK average. England had the highest prices, with petrol averaging 136p and diesel 141.7p, while Scotland and Wales were 134.5p and 134.9p for petrol and 140.6p and 140.2p for diesel.
The cost of oil remained largely stable, averaging 73 US dollars a barrel, leading to little change in wholesale prices. The RAC has acknowledged the latest figures amid concerns from the competition watchdog that motorists are still being overcharged for fuel due to “stubbornly high” margins. The Competition and Markets Authority (CMA) highlighted that fuel margins have remained above historical averages, indicating ongoing worries about reduced competition in the sector.
According to the CMA, supermarket fuel margins climbed from 7% in April to 8.1% in August, while non-supermarket fuel margins increased from 7.8% in April to 10.2% in August. 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.”
Mr Williams expressed disappointment in the wake of the CMA’s recent statement of concern regarding the lack of competition among fuel retailers, following their conclusion that drivers were overcharged by £1.6bn in 2023.
He added: “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.”