Latest petrol and diesel fuel prices

The latest average UK fuel prices, as of the 13th of June 2024, are 145.83p for petrol and 151.07p for diesel. 

Key Statistics

• Hong Kong is the country with the highest fuel prices in the world, at $3.08 per litre of petrol. That means it would cost $169.40 to fill up a 55-litre car.
• The top 5 most expensive countries to buy fuel (per litre) are:
  • Hong Kong ($3.08).
  • Singapore ($2.11).
  • Finland ($2.09).
  • Albania ($2.08).
  • Netherlands (($2.07).
• The cheapest countries to buy fuel (per litre) are Libya ($0.03), Egypt ($0.26) and Algeria ($0.33).
• The Isle of Wight is the most expensive region in the UK to purchase petrol with prices peaking up to 150.6p. 
• Northern Ireland is the cheapest place in the UK to buy fuel, with average prices at 139.1p for petrol and 148.1p for diesel (as of March 2024).
• The average price of gasoline around the world is £1.03 per litre and diesel is £0.99 litre.
• In 2022, the US ranked #1 for gasoline consumption in the world with 8.81 million barrels per day. The latest value for China is 3.15 million barrels per day in 2021.
• The gap between supermarket fuel prices and the UK average is just 0.52ppl for petrol and 0.57p for diesel as of March 2023. 

Why are fuel prices still so high?

The simple reason for fuel prices being so high is that the cost of a barrel of oil has risen. 

Since 2020, wholesale Brent crude oil was trading for around $40 a barrel (in April that year it even briefly dropped below $20 a barrel). Prices have increased since then, partly driven by factors like the end of the pandemic (massive increases in demand in a short space of time) and Russia's invasion of Ukraine. 

In 2022, prices briefly crept up beyond $120 a barrel ($123 in May), higher than any point since 2014. Prices have fallen since then, but as of the 4th June 2024, the price per barrel is $77.52 - almost double the price compared to the same point in 2020.

When the price of oil rises, those costs are usually passed on to the consumers by fuel retailers, even if they absorb some of the increases. However, when wholesale prices fall, retailers are reluctant to pass the savings on.

For the regular motoring population, fuel retailers are hugely important. Competition between the 'big four' supermarkets Asda, Tesco, Morrisons and Sainsbury's has helped to reduce prices in the past – when one supermarket giant cuts their fuel prices others often follow. 

In 2023, fuel retailers were heavily criticised for not cutting the cost of fuel at the pumps when the price of oil dropped.

The UK Government also has a significant impact on fuel prices. It controls two major components: fuel duty, which is currently at 52.95p per litre, and the standard 20% VAT rate. These two elements make up the bulk of the price of petrol and diesel.

Fuel duty was frozen from March 2011 to March 2023, bringing some relief for drivers in the midst of rising prices, while the former Chancellor Rishi Sunak lowered it by 5ppl in the Spring Budget 2023. 

When the Government introduced E10 petrol in England, Scotland and Wales in September 2021 it had an impact on fuel prices as ethanol is more expensive than petrol.

Other factors which influence wholesale prices are: oil refinery production and capacity, the pound to dollar exchange rate, (as refined fuel is sold in US dollars per metric tonne) and distribution costs. 

How much does it cost to fill up the average family car?

As of the 6th June 2024, it costs £80.88 to fill up a Ford Focus (55-litre fuel tank) with petrol and £83.90 to fill up with diesel. 

Which is the most expensive place in the UK to buy fuel?

In March 2024, the South East had the highest average diesel and petrol prices, with drivers paying 154.6ppl for diesel and 146.1ppl for petrol. 

Which is the cheapest place in the UK to buy fuel?

Northern Ireland is the cheapest place in the UK to buy fuel. In March 2024 the average price of petrol in Northern Ireland was 139.1p while diesel was 148.1p. 

Where can I find the cheapest fuel prices near me?

Supermarkets, in general, have the cheapest fuel prices. The big four supermarkets – Asda, Morrisons, Sainsbury's and Tesco – all lowered prices after the 5p fuel duty cut.  BP-owned and Shell-owned fuel stations also applied the 5p cut (6p including VAT).

As of March 2024, the gap between supermarket fuel prices and the UK average is just 0.52ppl for petrol (with the UK average being 143.49p and the average at supermarkets being 142.97p). The difference in the price of diesel was 0.57p (the average price at supermarkets was 152.15p against the UK average price of 152.69p). 

Why do fuel prices fluctuate?

An increase in the demand for fuel, both domestically and internationally, can cause prices to increase. Fluctuation may arise from interruptions in pipeline supply or refinery maintenance, leading to decreased availability and consequently higher bids for the limited supply.

Are fuel prices going down?

Since the start of the new year 2024, fuel prices have dropped slightly, after straight months of rises in 2023. As of March 2023, the average fuel price in the UK is 142.97p per litre for petrol and 152.69p for diesel.

Compared to the start of 2023, prices for petrol in 2024 remain considerably lower – in January 2023, the average price was 155.46p per litre, and that dropped to a low of 143.99p in July. Diesel has been more unstable – it cost an average of 178.94p in January, and just 146.40p in July.

How often do fuel prices change?

How often do pump prices change in the UK? Fuel prices change whenever there is a significant increase or reduction in the wholesale price of petrol or diesel. Retailers can update their prices to reflect these changes as often as they like.

Who sets fuel prices in the UK?

The price you pay per litre of petrol and diesel depends on wholesale fuel prices (i.e. the price retailers pay to get fuel) which are themselves affected by: the global crude oil price, which fluctuates according to supply and demand of crude oil.

What affects fuel prices?

There are 8 factors that affect fuel prices:

• Global price of crude oil
• Cost of distribution
• Fuel duty charge
• Supply and demand for crude oil
• Exchange rate
• Retailer margin
• VAT
• Refinery production and capacity. 

Even a small change in any of these is reflected in the price of fuel at the pump.

Global Fuel Prices

• The average price of gasoline around the world is £1.03 per litre. 
• Iran, Libya, and Venezuela have the cheapest gasoline prices in the world at 22 PPL (£0.022), 23 PPL (£0.023), and 27 PPL (£0.022) respectively.
• At £1.451 per litre, the UK currently ranks #145 for cheapest gasoline price in the world (or 25th most expensive place to buy gasoline)
• A litre of gasoline costs £2.446 in Hong Kong, making it the most expensive place to buy gasoline in the word — it would cost £134.53 to fill a 55-litre tank.
• The average price of diesel around the world is £0.99 litre.
• At £0.003 per litre, Venezuela has the world’s cheapest diesel price, followed by Iran (£0.004 per litre) and Libya (£0.024 per litre).
• At £2.337 per litre, Hong Kong had the world’s most expensive diesel price in March 2024, followed by Iceland (£1.853 per litre) and Monaco (£1.802 per litre).
• At £1.548 per litre, the UK ranked #159 for cheapest diesel price in the world (or 10th most expensive place to buy diesel) in March 2024.
• The average price of diesel around the world is £0.99 litre.
• At £0.003 per litre, Venezuela has the world’s cheapest diesel price, followed by Iran (£0.004 per litre) and Libya (£0.024 per litre).
• At £2.337 per litre, Hong Kong currently has the world’s most expensive diesel price, followed by Iceland (£1.853 per litre) and Monaco (£1.802 per litre).
• In March 2024, £1.548 per litre, the UK ranked #159 for cheapest diesel price in the world (or 10th most expensive country globally to buy diesel).
• As of 2022, the US ranked #1 for gasoline consumption in the world with 8.81 million barrels per day . The latest value for China is 3.15 million barrels per day in 2021.
• Russia is the third biggest gasoline market in the world with 829.65 thousand barrels consumed per day. 
• In 2022, the US consumed 4.3 million barrels of diesel and heating oil per month. China’s data from 2021 puts it in second place with 3 million barrels per day. 
• The UK consumed 608.06 thousand barrels of diesel and heating oil in 2022, the 9th highest consumption in the world.

Impact of Fuel Prices on Industries

Fuel is a critical piece of the world economy and a primary source of energy that powers various industries and enables households to sustain their daily lives. However, fuel prices are the result of constantly fluctuating and complex factors on a global scale. Here’s how fluctuations in fuel prices affect various industries:

Transportation

Fuel prices determine the cost of transportation for vehicle owners — and how much travelling they’re willing to do. High fuel prices means higher expenses for drivers and can strain a person’s budgets. Long-distance travel, holidays, and business trips can become more expensive (and less likely to happen or infrequent) due to high fuel prices.

Manufacturing 

Fuel is a significant and unavoidable expense for many businesses, particularly those in logistics, transportation, and manufacturing. High fuel prices can increase operating costs and reduce competitiveness. This can, in turn, lead to higher production costs and final product prices, which is reflected in prices for the customer.

Agriculture

The effect of high fuel cost on agriculture is the same for most sectors: farm produce has to be moved from the farm to the final consumer, or to the processing plant and then to the consumer — this transportation depends on fuel. Tractors and other machines also need fuel. 

Aviation

On average, the largest operating costs for airlines are the companies' fuel expenses and those expenses related to the procurement of aeroplane fuel. Fuel costs are such a huge part of an airline's overhead percentage-wise that even the slightest fluctuation in the price of oil is bound to affect the airline's bottom line. 

What effect does a rise in fuel prices have on product prices?

When fuel prices increase, the cost of almost all products are bound to increase too — especially products that go through a fuel-dependent manufacturing/processing stage or that need to be transported to the consumer. 

Sometimes the effect of increased fuel prices may be indirect. For instance, a scented candle producer may not need fuel to make the candles. But since they pay more to fuel their car or for rides to buy candle ingredients, then they’ll likely include that cost in the price of their candles.

Sources

RAC Fuel Watch, the AA, Experian Catalyst, Investopedia, Our World In Data, CBC, OPEC, Norsk Petroleum, The Guardian, Reuters, EIA, My NRMA, Get Road Trip, PetrolPrices, Fleet News, Lookers, Birmingham Mail, Yahoo News, Energy, Global Petrol Prices, The Global Economy, Energy Inst, BP, OEC, World's Top Export