Petrol and diesel drivers 'prevented from benefitting from lower prices' at UK fuel stations

WATCH: Motorists to see HUGE diesel and petrol price rises

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GB NEWS

Felix Reeves

By Felix Reeves


Published: 03/09/2025

- 09:35

The cheapest petrol and diesel prices in the UK can be found in Cookstown, Northern Ireland

New research has found that petrol and diesel drivers are still being overcharged at the pumps, despite fuel prices falling over the last month.

Drivers heading to the filling stations are now paying an average of 134.64p, while diesel has fallen to 142.2p, with both dropping by less than a penny between the start and end of August.


The RAC Fuel Watch data also showed modest supermarket price reductions, with the average price of unleaded dropping 0.72p and 0.3p for diesel.

Although petrol and diesel prices have fallen slightly over the last month, the RAC believes motorists should be saving more money.

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Petrol station and a petrol pump

Experts have called for greater competition between major retailers and supermarkets to lower fuel prices for drivers

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This is despite oil prices and wholesale fuel prices remaining relatively stable, following months of global instability, much of which stemmed from tensions between Israel and Iran.

It echoes the calls from the Competition and Markets Authority (CMA), which stated that the margin on fuel remains high.

The financial regulator also noted that competition in the road fuel retail market remains weak, meaning drivers are unlikely to see major price drops.

Drivers are likely to be more frustrated by this, given Chancellor Rachel Reeves' extension to the 5p per litre fuel duty cut in the Autumn Budget last year.

Petrol pricesPetrol and diesel prices peaked across the UK in the aftermath of the Russian invasion of Ukraine | PA

RAC head of policy Simon Williams said: "While it's good news that two months of rising fuel prices have come to an end, it's disappointing that high retailer margins are preventing drivers from benefitting from lower prices.

"The Competition and Markets Authority's latest report confirms that retailer margins are far higher than they were historically, and that competition remains weak."

Motorists paying the UK average for their fuel can expect to pay more than £74 for unleaded, although they could save around £2 when visiting a supermarket forecourt.

The average family-sized 55-litre diesel car will cost £78.21 to fill, or £76.35 when opting for the cheaper supermarket option.

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Northern Ireland continues to be a shining light for fuel prices, with the Consumer Council Fuel Price Checker helping to slash costs for motorists by publishing the average, cheapest and most expensive prices in every town across the nation.

The latest data from the online tool shows that drivers are paying an average of 127.9p for petrol and 134.5p for diesel, 5p and 7p cheaper than the UK average, respectively.

Cookstown, in County Tyrone, is offering the cheapest fuel prices in the UK, with 124.8p for unleaded and 129.2p for diesel.

Mr Williams said Northern Ireland's cheap fuel prices, as well as a lack of competition among forecourts, were "no doubt a source of ongoing frustration" for the nation's motorists.

Fuel pump

Petrol and diesel prices are generally around 5p cheaper in Northern Ireland than in England, Scotland and Wales

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PA

Outside of Northern Ireland, a handful of major retailers and supermarkets are offering the cheapest fuel, many of which can be found at BP garages or MFG Morrisons forecourts.

MFG Morrisons in Leighton Buzzard, Bedfordshire, is charging just 126.7p per litre for petrol, making it the cheapest in the country, followed closely by BP garages in Corby, Bovey Tracey and Liverpool, all of which charge less than 127p.

The same BP on Newton Road in Bovey Tracey, Devon, will see drivers benefit from the cheapest diesel at a mere 131.9p, almost 3p less than any other forecourt in England, Scotland and Wales.

Mr Williams concluded, saying: "We hope that greater transparency of fuel prices from the end of this year means that a spotlight is shone on both those forecourts that charge the fairest prices and indeed, those that sell petrol and diesel for far higher amounts."