Fuel prices for taxi drivers and motorists stabilise despite Middle Eastern tensions
Despite a brief rise in oil prices due to early October tensions in the Middle East, fuel costs at UK forecourts for cabbies and other motorists remain at a three-year low, according to RAC Fuel Watch.
Petrol now averages 135.2p per litre, with a slight increase of just one-third of a penny since September. For a typical 55-litre family car, this equates to a fill-up cost of around £74.40. Diesel has seen a modest rise as well, up two-thirds of a penny to 140.2p per litre, taking the cost of a tank to just over £77.
UK diesel remains the most expensive in Europe, a pattern observed for 21 of the last 27 weeks. Supermarkets, however, continue to offer a minor reprieve for motorists, with an average 3p per litre saving. Petrol at supermarket forecourts averages 132p, while diesel stands at 136.8p, potentially shaving nearly £2 off a full tank.
Fuel prices vary notably by region, with Northern Ireland offering some of the lowest in the UK. Petrol in Northern Ireland averages 130.4p, with diesel at 134.1p – both around 5p to 6p lower than national averages, and slightly cheaper than the typical supermarket rates. Membership retailer Costco, with 20 locations in England and Scotland, provides even lower prices, with petrol at 127p and diesel at 131.7p, around 8p below the UK averages.
RAC Head of Policy, Simon Williams, said: “Despite the price of oil briefly jumping up to around $80 a barrel in the early part of October due to increased tensions in the Middle East, prices at the pumps have fortunately remained stable at a three-year low.
“This is yet more good news for drivers following the Chancellor’s extension of the 5p duty cut at her first Budget last week. But it’s also worth remembering that even now 55% of the total price of a litre of fuel is tax in the form of fuel duty, and the VAT that is charged on top.
“With prices still at least 5p a litre cheaper in Northern Ireland than the UK average, it was also positive to see at the Budget that the Government aims to allow the Competition and Markets Authority to use its statutory powers to monitor competition in the road fuels retail market in just two months’ time. The Government has also acknowledged, as the RAC has been advocating for some time, that ‘this function will be crucial in providing ongoing scrutiny of prices and considering whether further action may be needed to protect consumers’.
“Also, by the end of 2025 the Government’s ‘Fuel Finder’ scheme will come into force obliging every retailer to report their prices to a central database within 30 minutes of a change being made. It’s worth remembering that the RAC is already giving drivers the chance to find the cheapest fuel near them via the myRAC app.
“We hope the Government’s actions will ensure drivers get a fairer deal every time they fill up.”
