Petrol and diesel drivers have been boosted by new data that shows fuel prices have fallen over the last month, despite concerns that prices will remain unstable in 2026.
Data from RAC Fuel Watch revealed that petrol fell by 1.8p per litre last month, while diesel drivers benefitted from a 2.3p drop.
By the end of the year, both fuels were around 1.5p cheaper than they were at the start of the year, in a welcome update for drivers across the UK.
Motorists saw the lowest fuel prices on June 9, when unleaded fell to just over 132p per litre and diesel set drivers back 138.14p.
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Supermarkets offered the cheapest fuel across 2025, with an average saving for petrol and diesel drivers at around three pence per litre.
While the savings may not seem major, drivers could save £1.50 per tank when filling up an average 55-litre family car at a supermarket.
Despite the falling prices, experts have noted that fuel costs still fail to reflect the drop in wholesale oil prices.
Simon Williams, head of policy at the RAC, said: "After prices at the pumps fell by 2p a litre in December, drivers are starting the new year paying 1.5p less than they were a year ago."
Drivers have seen petrol and diesel prices fall in recent weeks across the UK
|PA
He acknowledged that oil prices had fallen below $60 (£44.39) a barrel in mid-December, the lowest point since February 8, 2021.
Oil recorded its lowest monthly average price in December since January 2021 at $61.69 (£45.64), although these massive price savings were not passed on to consumers.
Mr Williams said it was a "shame" that motorists across the UK were not seeing the benefits of this price drop.
"As wholesale fuel costs went below those that led to the cheapest prices of the year in June, we'd have hoped to see the year lows of 132p for petrol and 138p for diesel beaten," he added.
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Some experts had also warned of serious repercussions from global factors, including conflicts in Ukraine and the Middle East, and more recently, rising tensions in Venezuela.
Venezuela has come under intense scrutiny in recent weeks from the United States, escalating to a position where President Nicholas Maduro was arrested and flown to the US to face trial in New York.
Estimates suggest Venezuela has around 303 billion barrels worth of crude oil in its reserves, although it exported just over $4billion (£3billion) worth in 2023.
Economic sanctions and embargoes on the fuel have had a dramatic impact on the nation's ability to export fuel to most countries around the world.
A DESNZ spokesperson confirmed to GB News that Fuel Finder is 'on track' | PADrivers in the UK will soon be supported by new measures to bring prices down, with modelling suggesting that motorists could save between one and six pence per litre.
Mr Williams said: "We hope that 2026 will see more competitive pump prices on the back of the Government's Fuel Finder scheme going live at the start of February and increasing competition."
Drivers in Northern Ireland already benefit from cheaper fuel thanks to the Consumer Council's Fuel Price Checker, which displays fuel prices across the country.
Fuel stations in Carrickfergus are selling unleaded petrol for just 125.2p per litre, while diesel is cheapest in Newtownabbey at just 131.4p.