The average price of petrol across the UK reduced by 6p a litre in December to under 147p (146.69p), making for two consecutive monthly falls, shows data from RAC Fuel Watch.
The drop means a full 55-litre tank now costs £77.32, down £3.40 in the month. Diesel also came down by 5p to 149.18p, saving almost £3 (£2.86) on a fill-up (£82.05).
Unleaded is now back to a price last seen in early February 2022 – prior to Russia’s invasion of Ukraine which led to the cost of oil rocketing to around $130. The price of a barrel is now under $80.
Despite the reductions the RAC believes prices on the nation’s forecourts should be lower still if the big four supermarkets were taking fairer, smaller margins. Instead, in December the average supermarket margin on a litre of fuel was 13p which is more than double the amount taken in 2021.
Shockingly, in Northern Ireland petrol is 5p cheaper than the UK average at just 135.28p and diesel is 5p less at 144.2p. Both fuels bought in Northern Ireland are also cheaper than the averages charged at the big four supermarkets – 137.63p for petrol and 145.89p for diesel.
Worse still, the fuel finder feature in the free myRAC app shows independently run forecourt Grindley Brook in Whitchurch, Shropshire, is significantly undercutting the supermarkets by charging 130.9p for petrol – 7p less than their average of 137.63p. Its diesel price is 139.9p – 6p less than the supermarket average of 145.89p.