TANK SAVINGS: UK fuel prices tumble with more cuts ahead

Drivers across the UK are seeing the sharpest drop in fuel prices this year, with petrol and diesel now nearly 7p per litre cheaper than just a month ago.

According to RAC Fuel Watch, the average price of unleaded petrol has fallen to 136.15p, down from 142.86p in mid-August, offering a saving of almost £4 for a full tank. Diesel prices have followed suit, now averaging 140.87p, down from 147.74p a month ago.

These are the lowest fuel prices seen in almost three years, and the trend looks set to continue. The RAC expects further drops in the coming weeks, predicting that by the end of September, the average price of petrol could fall to 132p, with diesel potentially hitting 138p per litre.

Supermarkets are currently offering even lower prices, with unleaded available for 133.23p and diesel for 137.69p. Northern Ireland boasts the lowest prices in the UK, with petrol at 131.5p and diesel at 134.2p per litre.

The fall in prices is driven by two main factors. A lower global oil price, currently around $73 per barrel, and a stronger pound due to easing inflation, are providing retailers with favourable conditions to cut costs at the pump.

This recent drop marks the most significant price reduction since late 2023, when prices fell by a similar margin, though fuel remained more expensive than it is today. The coming weeks will reveal if RAC’s predictions of a continued price decline materialise, potentially providing even more relief for UK motorists.

RAC fuel spokesperson Simon Williams said: “It’s really encouraging to see pump prices coming down so rapidly, which we know is as good for drivers’ wallets as it is for keeping the headline level of inflation in check.

“Of course, global oil prices and even the strength of the pound can fluctuate wildly and that’s something completely out of drivers’ control. But with the cost of filling up making up a sizeable chunk of many households’ overall monthly spending it makes sense to stretch every pound spent on fuel as far as possible. Driving efficiently – for instance, with a ‘light right foot’ and by changing up to as high a gear as possible – is the best way to do this, along with paying less to fill up in the first place.

“The message to drivers is simple – keep shopping around for fuel and use the available free tools out there, like the myRAC app, to always pay the lowest price wherever you can. We publish averages on our app and website to help drivers see the absolute maximum they should ever be paying, but there are some good deals out there if you know where to look.

“Based on wholesale pump prices, which is what retailers pay to buy the fuel in the first place, we know there’s scope for further price cuts so we very much hope that within the next few weeks we’ll see pump prices reach their lowest levels in three years. And, as our analysis clearly shows, it’s drivers in Northern Ireland who continue to get the best value with pump prices there between 5.5p and 6p cheaper per litre compared to the average across the whole of the UK.

“We continue to look forward to the new Government proceeding with its plans to introduce greater pump price transparency with the Pumpwatch scheme, along with an official monitoring function that can help ensure drivers are charged a fair price every time they fill up.”