9 December 2024

How Diesel and Petrol Prices Are Looking This Christmas

In recent months, petrol and diesel prices have been on a bit of a rollercoaster. After seeing sharp increases earlier this year, both fuels have dropped significantly from the high prices we saw last Christmas. In fact, the RAC reports that diesel is currently 12p cheaper per litre than it was this time last year, which means a saving of £6.60 for a full tank. Petrol has dropped too, though not as dramatically, at 10.5p cheaper than the same time in 2023, saving drivers around £5.75 per tank.

Prices did see a bit of a bump in November, with petrol climbing by 1p to 136.5p per litre and diesel rising by nearly 2p to 142.25p. While this uptick might feel like a small bump in the road, it’s important to keep things in perspective. Even with those increases, prices are still much lower than the highs of two years ago, when petrol was hovering around 159.9p per litre and diesel hit a staggering 183.9p.

While the UK average for petrol at the end of November was 133.2p, there were regional differences worth noting. Drivers in Northern Ireland were enjoying the best prices, with petrol averaging 130.6p per litre—6p less than the UK average. In contrast, England saw the highest prices, with petrol at 136p per litre.

These regional differences can impact businesses with a fleet of vehicles, especially if you're managing fuel costs on a national scale. Whether you're in logistics, delivery, or any other sector that relies on fuel, keeping track of these regional price fluctuations can help you make more informed decisions.

What's Going on Behind the Pump?

If you're wondering why prices are still a little on the high side despite the drops over the past year, it all comes down to margins. While the price of oil has remained fairly stable at $73 per barrel, the retailer margins—the difference between wholesale costs and what we pay at the pump—have stayed relatively high. In fact, the Competition and Markets Authority (CMA) has raised concerns about the lack of competition in the fuel retail market, warning that drivers may have been overcharged by a whopping £1.6bn in 2023 alone.

While that’s concerning for consumers, it also points to a potential area for savings for businesses that rely on large-scale fuel usage. If competition in the retail fuel market increases, we might see lower prices at the pump, benefiting anyone managing a fleet of vehicles.

Activa is insights and solutions to help you maximise your fleet’s efficiency. With prices fluctuating, now is the time to consider tools like fleet fuel management systems to optimise fuel use and reduce wastage.