Fuel prices remain low despite modest increase
Fuel prices rose for the third month in row in December, with average UK petrol prices at 136.9p and diesel at 142.9p.
This is up from 135p and 139.5p respectively at the stat of October.
However, despite these modest increases, 2024 was a more encouraging year at the pumps for drivers, with RAC Fuel Watch finding that petrol prices fell by 14p per litre from its peak price in April and diesel was down by 16p.
Prices could continue to soften through 2025 with the government committed to introducing a mandatory fuel price reporting scheme which will stipulate that all retailers share prices with the government within 30 minutes of any price change.
Fuel prices settle
RAC head of policy Simon Williams said: “Looking back, it’s quite clear that 2024 was a year of two halves for fuel, with the second proving far better as the lower cost of oil translated to cheaper prices on the forecourt.
“Unfortunately, RAC Fuel Watch data shows average retailer margins are still well above the long-term figures. This is something the Competition and Markets Authority acknowledged in its November interim report, adding that it remains concerned about the lack of competition between retailers.
“As the government has committed to introducing a mandatory fuel price reporting scheme this year, we’re hopeful this will eventually lead to greater competition and fairer prices across the country’s forecourts.”
