In recent months, UK motorists have faced a persistent rise in fuel prices. As of January 2025, petrol prices have increased by 2 pence per litre, reaching an average of 139 pence, up from 136.9 pence at the start of the year. Diesel has seen a more significant rise of nearly 3 pence per litre, averaging 145.7 pence, compared to 142.9 pence previously. This marks the fourth consecutive month of price hikes, resulting in a cumulative increase of 5 pence per litre for petrol and 6 pence for diesel since October 2024.
The RAC says the rises have been driven by a mid-month spike in the oil price which saw the cost of a barrel shoot up above $80 for several days. This, together with a slight weakening in the value of the pound which made wholesale fuel more expensive to buy, had an unwelcome effect on the UK’s forecourts.
Regional Disparities in Fuel Pricing
Fuel prices across the UK exhibit regional variations:
- England: Holds the highest average petrol price at 138.5 pence per litre and diesel at 145.2 pence.
- Wales: Reports an average petrol price of 137.3 pence and diesel at 143.4 pence.
- Scotland: Averages 136.9 pence for petrol and 143.9 pence for diesel.
- Northern Ireland: Offers the lowest prices, with petrol at 133.1 pence and diesel at 137.9 pence per litre.
Impact on Motorists
The continuous rise in fuel prices has tangible effects on drivers:
- Increased Refuelling Costs: Filling a standard 55-litre petrol vehicle now costs £76.44, up from £74.25 when the price per litre was 135 pence. Diesel vehicle owners face an increase to £80.15 from £76.70 when prices were at 139.5 pence per litre.
- Budgetary Strain: The cumulative effect of these increases places additional financial pressure on households, especially those reliant on personal vehicles for daily commuting.
Future Outlook
While the current trend indicates rising prices, future developments remain uncertain:
- Potential Price Stabilisation: Some analysts predict that oil prices may average closer to $70 per barrel in the coming months, which could lead to a decrease in fuel prices at the pump.
- Market Volatility: Global oil supply and demand dynamics are inherently volatile, and unforeseen geopolitical or economic events could further influence prices.
RAC head of policy Simon Williams said: “It’s not been a good start to 2025 for drivers at the pumps with prices going up for the fourth month in a row. Sadly, filling up is now nearly £3 more expensive than it was at the start of October.
“We hope this trend won’t continue and that prices drop back down again. Much, of course, depends on global oil supply and demand. While the price of oil can be notoriously volatile, there’s reason to think forecourt fuel prices may get cheaper in the coming months as some analysts are predicting an average oil price nearer to $70 this year.”
