The nation’s motorists are paying the highest price to fill up in eight months as analysts warn that pump prices are rising at their fastest rate for a year and a half.
RAC Fuel Watch figures show petrol pump prices went up 2.17p in November, increasing the average cost of a litre to 137.17p – the highest price since mid-March.
Diesel prices escalated even more so – 3.84p in the month with the average cost of a litre now 146.57p, which is the most expensive it’s been since August 2024.
The RAC is now warning motorists about a ‘costly Christmas’ at the pumps as drivers face steeper prices than in 2024.
This dreary news for motorists comes after the Chancellor announced fuel duty would remain frozen for a 15th consecutive year and the ‘temporary’ 5p cut to the tax on petrol and diesel will be extended.
However, Rachel Reeves promised the 52.95p duty will be ‘increased in stages’ from September before returning to 57.95p per litre by March 2027.
The RAC data shows that last time fuel prices rose as sharply in a single month was April 2024.
Supermarket prices also increased, with unleaded up 2.46p to 134.48p and diesel up 3.6p to 143.08p. But they still remain significantly lower than the UK averages.
Due to the sharp rise in pump prices the cost of filling a family petrol car is now £75.44 (up £1.19 from £74.25 at the end October).
Those using supermarket forecourts will pay £73.69 for an average full tank of petrol.
A full diesel refill costs £80.61 on average, up £2.11 since the start of the month. At a supermarket it will be £78.69.
Drivers in Northern Ireland once again pay substantially less than those elsewhere in the UK, with a litre of unleaded just 129.6p on average and diesel at 137.7p.
Will it be a pricey Christmas for motorists?
Christmas is already an expensive time of the year but the rise in fuel prices will make it even harder on households to afford.
Compared to a year ago, petrol is about 0.5p per litre higher while diesel is more than 4p dearer.
RAC head of policy Simon Williams said: ‘Drivers will be disappointed to see prices at the pumps rise so sharply in the run-up to festive period.
‘Not only is it one of the most expensive times of the year, it’s also a time when many of us drive hundreds of miles to celebrate with family and friends over the extended break, making it a costly Christmas on the roads.’
Asda, the supermarket that traditionally triggered Christmas fuel price wars among the major retailers in previous years, has said it will give drivers a ‘festive boost’ this December with a new money-saving fuel offer at its Express stores.
During this month, drivers who spend £15 or more on groceries in one of its 500 Express stores will get 3p off per litre of fuel at the same time.
Joseph Sutton, vice president at Asda Express, foodservice and fuel, said: ‘We know every penny matters for our customers. This offer gives people a little extra help – letting them save on fuel while offering unbeatable value as they stock up on everyday essentials or festive treats in the run-up to Christmas.’
What will happen with fuel duty in the future – Budget recap
The Autumn Budget saw the Chancellor announce that the rate of fuel duty will begin to rise from 52.95p next September – ending the present 5p fuel duty discount introduced in spring 2022.
This increases the level of tax paid by drivers of petrol and diesel vehicles.
Addressing MPs last week, the Chancellor said in reference to fuel duty: ‘Under current plans, the temporary 5p cut to fuel duty that was introduced during the pandemic will come to an end in April and fuel duty will be uprated in line with inflation.
‘But I know the cost of travelling to and from work is still too expensive. And so I am extending the 5p cut until September 2026.’
After September fuel duty will ‘gradually return’ to March 2022 levels (57.95p) by March 2027.
But it is not all bad news for motorists because the Budget document outlines a planned increase to fuel duty in line with inflation for 2026-27 will be cancelled.
Reeves also told MPs that she will make it a legal requirement for filling stations to be more transparent with their pricing from spring next year.
‘Because I know changes in wholesale prices are not always passed on to motorists, I am brining in new rules to mandate petrol forecourts to share real-time price rises through a new Fuel Finder, empowering drivers to find the cheapest fuel, calling out rip-offs and strengthening competition, saving the average household £40 a year,’ she said.
The combined measures are expected to save families £89 next year compared to previous plans.
