Rajan Wilcox
The cost of fuel in the UK varies according to location and retailer, with prices differing between streets, towns, and even supermarkets. The price per litre also depends on the type of fuel, with unleaded petrol costing less than diesel, on average. As of August 2025, the average price of a litre of fuel in the UK is £1.34 for petrol and £1.30 for diesel. However, these prices are subject to change due to various factors, including the global price of crude oil and the exchange rate between the dollar and sterling.
| Characteristics | Values |
|---|---|
| Average price of a litre of fuel in the UK | £1.24 for petrol and £1.30 for diesel |
| Date | 23 December 2019 |
| Source | European Commission, US Energy Information Administration |
| Average price of a litre of gasoline in the world | USD 1.20 per liter |
| Average gasoline price in the UK from 24-08-2015 to 04-08-2025 | GBP 1.31 per liter |
| Minimum and maximum gasoline price in the UK during the above period | Minimum: GBP 1.01 on 2016-02-01, Maximum: GBP 1.92 on 2022-07-04 |
| Price of ultra-low sulfur unleaded petrol in the UK | 136.6 pence per liter as of 6 January 2025 |
| Price of diesel in the UK | 143.3 pence per liter as of 6 January 2025 |
| Factors affecting the price of a litre of fuel | Tax, global price of crude oil, strength of Sterling compared to the US dollar, retailers' willingness to pass on wholesale savings |
Explore related products
What You'll Learn
Fuel prices vary across the UK
The level of taxation also impacts fuel prices across the UK. As of September 2024, fuel duty was set at 52.95 pence per litre, with VAT at 20%. However, the proportion of tax varies, and a higher fuel price results in more VAT for the government. The strength of the pound compared to the US dollar also plays a role, as oil is traded in dollars, and a weaker pound can lead to higher pump prices.
Regional dynamics and competition between retailers also contribute to price variations. Prices can differ significantly even over short distances, with reports of a 27 pence per litre difference between two filling stations a short drive apart. Additionally, fuel prices in the UK can vary when compared to other nations due to different taxation rates. For example, diesel is often cheaper in other countries due to lower tax rates.
Motorists can use various tools, such as fuel price comparison websites and mobile applications, to locate the cheapest fuel in their vicinity. These resources enable drivers to make informed decisions and save money on their fuel purchases. By utilising these tools, drivers can navigate the fluctuating fuel prices across the UK and identify the most cost-effective options for their specific locations.
Fuel-Soaked Tickets: A Dangerous and Explosive Mix
You may want to see also
Explore related products
How tax affects fuel prices
The price of fuel in the UK is currently around £1.34 per litre for petrol and £1.30 for diesel. This price can vary depending on location and retailer, and has been subject to fluctuations over time. The price of fuel is influenced by various factors, including the global price of crude oil, the strength of Sterling against the US dollar, and taxation.
Taxation plays a significant role in determining fuel prices in the UK. As of September 2024, fuel duty was set at 52.95p per litre, with VAT charged at 20% on top of that. This means that a substantial portion of the pump price is made up of taxes. For example, the pre-tax price of a litre of petrol, plus fuel duty and VAT, results in a pump price that reflects a significant increase due to taxation.
The impact of tax on fuel prices can be seen more prominently when oil prices are falling. During these times, it may seem like pump prices are not decreasing proportionally. This is because as pump prices fall, the percentage of tax increases. Consequently, the government collects more in VAT when fuel prices are higher.
The relationship between fuel prices and economic activity is also important. Changes in household income and business activity can influence the demand for fuel and the distances travelled, thereby affecting fuel consumption and prices. Additionally, fuel efficiency improvements can impact the amount of fuel consumed relative to the distance travelled.
While fuel duty rates have remained relatively stable in recent decades, they have experienced some adjustments. For instance, the main rate of fuel duty was reduced by one penny in 2011 and was temporarily cut by 5 pence per litre from 2022 to 2023. These changes can impact revenue generation, with reductions in duty rates leading to decreases in receipts.
Fuel Line Repair Costs: How Much Damage?
You may want to see also
Explore related products
Cheapest places to buy fuel
As of August 2025, the current price of a litre of fuel in the UK is £1.34 for petrol and £1.30 for diesel. However, prices can vary significantly depending on location, even between towns that are just a few miles apart.
There are several ways to find the cheapest fuel near you. PetrolPrices.com offers a free mobile app that allows users to compare fuel prices across the UK, filter by brand or fuel type, and sort by distance. The RAC's Fuel Watch initiative also helps ensure fair pricing at UK forecourts and offers a free Fuel Finder feature within its myRAC mobile app to help users find the cheapest fuel in their area.
Supermarket petrol stations can often offer great value and convenience, and some independent retailers can be cost-competitive as well. It is worth shopping around to get the best fuel price, as even a small detour to visit a cheaper forecourt can lead to significant savings over time.
Additionally, some credit card companies offer cashback for spending money at filling stations, which can further reduce the overall cost of fuel.
Jet Fuel Weight: Gallons to Pounds
You may want to see also
Explore related products
Why fuel prices vary
The price of fuel in the UK is influenced by various factors, including domestic and global variables. As of August 2025, the average price of a litre of fuel in the UK is £1.34, with prices varying from region to region and even between towns that are just a few miles apart.
Firstly, the price of crude oil, which is set globally, is a significant factor in determining fuel prices in the UK. Oil prices are influenced by supply and demand, geopolitical tensions, natural disasters, and decisions made by large oil-producing nations. Since crude oil is traded in US dollars, fluctuations in the British pound's value against the dollar can impact the cost of oil in the UK. A weaker pound makes oil more expensive for UK buyers, leading to higher fuel prices.
Secondly, taxes play a substantial role in fuel pricing. VAT (Value Added Tax) and fuel duties constitute a significant portion of the price consumers pay. The UK government sets these tax rates, and they can increase or decrease over time, affecting the final price at the pump. When oil prices are falling, it may seem like pump prices are not decreasing proportionally because the lower the pump price falls, the greater the percentage of tax. Additionally, the government collects more VAT when fuel prices are higher.
Thirdly, local retail dynamics and competition influence fuel prices. The presence of competing supermarkets or independent retailers can drive prices down, as they may be keen to offer the cheapest fuel. However, in areas with less competition, such as rural locations or places with fewer filling stations, prices tend to be higher. Motorway service stations often charge higher prices as motorists are likely to use them without seeking alternative options.
Finally, regional fuel supply issues can cause price variations. Temporary disruptions in the supply chain can lead to price spikes. Additionally, the UK government's interventions through subsidies, taxes, or regulations can impact fuel prices, either to encourage or discourage fuel use or to mitigate the effects of global price increases on consumers.
In summary, the interplay of these factors determines fuel prices in the UK, resulting in variations across different regions and over time.
Diesel Fuel Costs in Canada: Price per Liter
You may want to see also
How the UK compares to other countries
As of August 2025, the average cost of a liter of petrol in the UK is around £1.60, while diesel is slightly higher at approximately £1.75 per liter. These prices have fluctuated in recent years, with global events such as the COVID-19 pandemic and the Russia-Ukraine conflict impacting oil prices internationally. While these prices may seem high to UK residents, how do they compare to fuel prices in other countries?
In general, fuel prices vary significantly worldwide due to various factors, including taxation policies, subsidies, and local production and supply dynamics. Many European countries tend to have higher fuel prices than the UK, often due to higher taxes. For example, as of August 2025, the average price of petrol in the Netherlands is around €2.40 per liter, which equates to approximately £2.05, while in Norway, petrol prices can exceed £2.20 per liter due to their high fuel taxes.
On the other hand, some countries have significantly lower fuel prices. In the United States, for instance, the average price of petrol is often well below £1 per liter, thanks to lower taxes and a plentiful domestic supply. In oil-rich countries, prices can be even lower; in Kuwait, which has substantial oil reserves, the price of petrol is heavily subsidized, and residents typically pay well under £0.50 per liter.
Asia also exhibits a wide range of fuel prices. Countries like Hong Kong and Japan are known for their high fuel costs, often exceeding £2 per liter due to import reliance and high taxes. In contrast, large oil-producing nations like Saudi Arabia and the United Arab Emirates enjoy much lower prices, with petrol often costing under £0.50 per liter.
In South America, fuel prices can vary drastically between countries. Brazil, a significant oil producer, typically has lower prices, with petrol costing around £1.20 per liter. Meanwhile, countries that import most of their oil, like Chile, can see prices exceeding £1.50 per liter.
Africa also presents a mixed picture, with oil-rich nations like Nigeria enjoying low fuel prices of around £0.70 per liter, while countries that rely heavily on imports, such as Kenya, can see prices surpass £1.30 per liter.
In summary, the UK's fuel prices are relatively high compared to some countries, particularly those with large oil reserves or lower taxation rates. However, they are also lower than many other countries, especially in Europe, where taxes often drive up the cost of fuel. The UK's fuel prices are influenced by a range of global factors and policies, resulting in a cost that sits somewhere in the middle of the international spectrum.
Trucks' Fuel Tanks: How Much Fuel Can They Hold?
You may want to see also
Frequently asked questions
The price of fuel in the UK varies depending on the region and retailer. As of August 2025, the average price of a liter of gasoline in the UK is £1.34.
Fuel prices in the UK are governed by wholesale fuel prices, which are influenced by the global price of crude oil and the dollar-to-sterling exchange rate. Additionally, fuel duty, charged by the government, is included in the pump price.
There are various tools available to help you find the cheapest fuel prices in your area, such as the myRAC app, the UK fuel prices locator by Fleet News and Allstar, and the fuel price calculator by the BBC.
As of the date of this response, the average price of unleaded fuel at supermarkets in the UK is around 142.2 pence per liter.
