UK Drivers Could Be Paying A Lot More For Fuel This Year, Here’s Why
The average price of unleaded petrol in the UK has increased by over 14p per litre to 147.19p, resulting in an additional cost of £8 to fill a typical family car, now totaling £81. Diesel prices have also risen significantly, with an increase of 29p per…
The average price of unleaded petrol in the UK has increased by over 14p per litre to 147.19p, resulting in an additional cost of £8 to fill a typical family car, now totaling £81. Diesel prices have also risen significantly, with an increase of 29p per litre to 171.17p, marking the highest price since January 2023. As a result, filling a diesel tank now costs £94, which is £16 more since the start of the Middle Eastern conflict.
A substantial portion of the fuel price is attributed to taxes. Fuel duty is set at 52.95p per litre, and VAT is 20%. At a pump price of 120p per litre, taxes account for 65% of the cost. When the price is £1 per litre, this rises to 75%. The duty rate, reduced in 2022, will remain at 52.95p as confirmed in the 2024 Budget.
Diesel prices have also risen significantly, with an increase of 29p per litre to 171.17p, marking the highest price since January 2023.
Fuel prices can vary significantly between locations. An RAC investigation highlighted a 27p per litre difference between two nearby stations. The RAC's Fuel Watch initiative monitors both wholesale and pump prices, advocating for fair pricing practices. Supermarkets, which account for about 44% of total fuel sales, have a notable impact on market pricing. Additionally, rural areas may experience higher prices due to increased distances from fuel terminals, although a rural fuel duty discount exists in certain regions.
Based on reporting by techround.co.uk.
