FUEL PRICES ON THE RISE IN DECEMBER: What it means for the UK taxi industry
Fuel prices saw a marginal rise in December, marking the third consecutive monthly increase, according to data from RAC Fuel Watch. Despite these increases, prices remain close to late 2019 levels, offering some relief to drivers compared to earlier in the year.
Petrol prices averaged 136.9p per litre at the end of December, up by just 0.36p from November, while diesel reached 142.9p, a rise of 0.67p. Over the past three months, petrol has risen from 135p in October, and diesel from 139.5p. These figures represent significant drops from the April peaks of 150.6p for petrol and 158.7p for diesel, with current levels saving drivers around £7.70 and £8.80 respectively for a full tank of fuel.
Supermarket forecourts continue to offer slightly cheaper fuel, with unleaded priced at 134p and diesel at 139.5p per litre, saving an average of £1.65 per tank compared to other outlets.
RAC attributes the stability in December’s prices to consistent oil trading between $72 and $75 per barrel, coupled with a steady pound-to-dollar exchange rate at $1.26. However, concerns remain over high retailer margins, which the Competition and Markets Authority flagged in November.
For the taxi industry, fuel price trends are a critical factor affecting operating costs. The relatively stable prices at the close of 2024, combined with government plans for mandatory fuel price reporting, may offer some hope for better competition and fairer prices at the pumps in 2025.
Taxi drivers and operators, who rely heavily on predictable fuel costs to manage expenses, will likely monitor these developments closely. While recent declines from earlier highs provide some respite, the push for greater transparency and competition in fuel pricing could have a more lasting impact on the industry.
