Rajan Wilcox
The cost of fuel per mile in the UK is a pressing issue for many drivers, especially with rising inflation and energy costs. Fuel prices have been steadily increasing, with diesel prices skyrocketing and petrol prices reaching record highs in July 2022. The cost of fuel varies across the UK, with local competition being a key factor in price differences. To combat rising costs, drivers are using their cars less frequently and turning to electric vehicles (EVs), which are much cheaper to power. Additionally, fuel calculators are being used to help drivers budget for their journeys and save on fuel costs. These calculators use fuel price and vehicle data to estimate the cost of a journey, allowing drivers to make more informed decisions and potentially reduce their fuel expenses.
| Characteristics | Values |
|---|---|
| Fuel cost calculation | Depends on fuel price and vehicle data |
| Fuel price factors | Competition, location, wholesale and retail fuel prices |
| Fuel saving tips | Maintain tyre pressure, drive in the highest gear, avoid busy roads, turn off the engine, use air conditioning sparingly |
| Advisory fuel rates | Worked out from fuel prices, depend on the type of car |
| Average fuel economy | 55 mpg |
| Average fuel cost | £1,051 for petrol, £1,257 for diesel |
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What You'll Learn
Fuel cost calculators
RAC Fuel Cost and Mileage Calculator
This calculator helps you work out how much a journey will cost in terms of fuel. It also displays the driving distance in miles and kilometres, the driving time, and your fuel usage. It is easy to use, requiring only your current location and the details of your destination. The RAC Fuel Watch initiative monitors petrol and diesel pricing to ensure retailers are charging fair prices.
Fleet News Fuel Cost Calculator
This calculator uses fuel price and vehicle data to calculate the cost of your journey. It also helps you budget for your fuel costs and shows potential savings. You can select your fuel type, input your mileage, and choose your vehicle's make and model. The calculator is updated every month with data supplied by CAP.
Fuel-Economy.co.uk Calculator
This calculator requires you to input the miles covered, your vehicle's estimated MPG, and the price of your petrol in pence to calculate the fuel cost of your journey. It also has a feature to calculate how much fuel you will need for a given journey and to work out your actual MPG.
Additionally, the UK government provides advisory fuel rates for company car users, which are calculated based on fuel prices and weighted average values. These rates are useful for understanding fuel benefit charges and reimbursements for business travel.
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Electric vehicles
The cost of charging an EV is variable, depending on the vehicle's efficiency and where you plug it in. The efficiency of an EV is measured using the Worldwide Harmonised Light Vehicle Test Procedure (WLTP), which includes energy lost as heat while charging. This is similar to spilling fuel while filling up a petrol or diesel car. The WLTP test involves fully charging a vehicle and then simulating different road types in a laboratory setting. Efficiency is presented as a weighted average, with some manufacturers using watt-hours per kilometre (Wh/km), others using kilowatt-hours per 100 kilometres (kWh/100km), and some using miles per kilowatt-hour (MPkWh). In the UK, MPkWh is the most relatable figure as roads are measured in miles.
The cost of electricity also varies by supplier and tariff, and some providers offer EV tariffs with savings for overnight charging. The price of electricity is measured and sold by the kilowatt-hour (kWh), similar to buying liquid fuel by the litre. The more kWhs of energy a vehicle's battery can store, the further it will travel on a full charge and the more it will cost to charge.
There are various online tools available to calculate the fuel costs of a journey for both EVs and petrol/diesel cars. These tools allow users to input their vehicle type, journey distance, frequency, and electricity or fuel costs to estimate their fuel expenses.
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Diesel vs. petrol
When it comes to choosing between a diesel or petrol car, there are several factors to consider, including cost, fuel efficiency, environmental impact, and government regulations.
Cost
Diesel cars are typically more expensive to buy than petrol cars, although the price difference can vary depending on the car's age, make, and model. For example, a petrol Mercedes E 200 AMG Line saloon is priced at £55,120, while its diesel counterpart, the Mercedes E 220 d AMG Line, costs £56,820. Diesel fuel is also generally more expensive than petrol, with an average price difference of 22 pence per litre in the UK.
Fuel Efficiency
Diesel cars offer better fuel efficiency than petrol cars, providing more miles per gallon. In a test by What Car?, a diesel Genesis GV70 achieved 43.0 miles per gallon, compared to 33.3 miles per gallon for its petrol-engined sibling, despite the petrol version having a more powerful engine.
Environmental Impact
Diesel cars were initially considered more environmentally friendly as they reduced carbon emissions. However, it was later discovered that they produce higher levels of particulates, which are tiny bits of soot that can enter the lungs and potentially trigger asthma attacks. Due to their impact on air quality, some cities in the UK, such as London and Birmingham, have implemented restrictions or surcharges for older diesel vehicles.
Government Regulations
The UK government is phasing out the sale of new diesel and petrol cars. From 2030 onwards, new diesel car sales will be banned, and by 2035, all new cars will need to be zero-emission, potentially leading to a shift towards electric vehicles.
In summary, while diesel cars offer better fuel efficiency and were once favoured for their reduced carbon emissions, they are now more expensive to buy and fuel. Additionally, with the upcoming ban on new diesel and petrol car sales, alternative fuel options may become more attractive to car buyers in the long term.
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Advisory fuel rates
The advisory fuel rates for petrol, LPG, and diesel cars are available on the UK government website. These rates only apply to employees using a company car. If the mileage rate paid is no higher than the advisory fuel rates for the engine size and fuel type of the company car, there will be no taxable profit, and no Class 1A National Insurance to pay.
If your cars are more fuel-efficient, or if the cost of business travel is higher than the guideline rates, you can use your own rates to reflect your situation. If you pay rates higher than the advisory rates but cannot show that the fuel cost per mile is higher, there will be no fuel benefit charge if the mileage payments are only for business travel. Instead, you’ll have to treat any excess as taxable profit and as earnings for Class 1 National Insurance purposes.
There will be no fuel benefit charge if you correctly record all private travel mileage and use the correct rate (or higher) to work out how much your employees must repay you for fuel used for private travel. You will not need to use the advisory rates where you can show that employees cover the full cost of private fuel by repaying at a lower mileage rate.
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Fuel-saving tips
The cost of fuel per mile in the UK is constantly changing, which can be frustrating for motorists. While the speed you drive is the most influential factor in fuel consumption, there are other ways to change your driving habits that will have a significant impact.
Maintain your vehicle
Regular maintenance and servicing improve efficiency and fuel consumption. Check your oil frequently and monitor tyre pressure weekly. Keep tyres inflated to the correct pressure as indicated in your owner's manual. Under-inflated tyres increase rolling resistance, lowering your fuel economy.
Reduce weight
The heavier the car, the more fuel it uses. Remove unused roof bars, bike racks, and clutter in the boot. Carrying 50kg of excess weight can increase fuel consumption by up to 2%.
Plan your journey
The technique of 'hypermiling' or eco-driving can help you increase your miles per gallon. This involves looking ahead to pre-empt oncoming hazards, keeping momentum, and avoiding losing acceleration. Driving at a constant, steady speed and avoiding heavy traffic will save fuel. Use a journey planner to help schedule your journey and avoid the rush.
Drive at a steady speed
Excessive speed is the biggest fuel-guzzling factor. Driving at 60mph instead of 70mph on the motorway can save you up to 10% in fuel. Accelerate gradually to reduce engine strain and fuel usage.
Share your journey
Sharing a journey with just one person halves the amount of fuel used. Fewer cars on the road mean fewer emissions and more parking spaces.
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Frequently asked questions
The cost of fuel per mile in the UK depends on several factors, including the type of fuel, the vehicle's fuel economy, and the distance travelled. As of March 2025, the average cost of petrol was £1.356 per litre and £1.431 for diesel. Motorists with petrol cars achieving 55 mpg and driving 6,000 miles per year would pay around £676 per year, while those with cars achieving 25 mpg would pay £1,488.
You can use a fuel cost calculator, which takes into account factors such as your vehicle's fuel economy (mpg), the distance travelled, and the fuel price.
Fuel prices can vary significantly across the UK, even between neighbouring towns. Generally, areas with more petrol stations, particularly those with supermarket forecourts, tend to have lower prices due to increased competition. Remote areas with fewer stations usually charge higher prices to cover overheads.
Yes, there are several ways to reduce fuel costs:
- Maintain your vehicle regularly, including checking oil levels and tyre pressure.
- Drive in the highest gear possible while staying within the speed limit.
- Avoid heavy acceleration and braking; gentle use of the pedals improves fuel economy.
- Remove unnecessary weight and roof racks from the vehicle.
- Avoid busy roads and idling; turn off the engine if stopping for a while.
- Use air conditioning and heating sparingly.
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