Motorists across the UK have faced yet another increase in fuel prices, marking the fourth consecutive month of rising costs, according to new analysis by the RAC.
Since October, the price per litre has climbed by 5p for petrol and 6p for diesel. At the end of January, the average cost stood at 139.0p per litre for petrol and 145.7p for diesel.
The surge in prices has been partly attributed to a mid-January spike in oil prices, which saw the cost of a barrel exceed 80 US dollars for several days. Additionally, a slight weakening of the pound against the dollar has made wholesale fuel more expensive for retailers, further contributing to the increase at the pumps.
RAC head of policy Simon Williams commented on the situation, stating: “It’s not been a good start to 2025 for drivers at the pumps with prices going up for the fourth month in a row. Sadly, filling up is now nearly £3 more expensive than it was at the start of October. We hope this trend won’t continue and that prices drop back down again. Much depends on global oil supply and demand. While the price of oil can be notoriously volatile, there’s reason to think forecourt fuel prices may get cheaper in the coming months as some analysts are predicting an average oil price nearer to 70 US dollars this year.”
The ongoing rise in fuel costs comes amid concerns raised by the Competition and Markets Authority (CMA) last year. The regulator warned that drivers were paying more for fuel than necessary due to persistently high fuel margins.
According to the CMA, supermarket fuel margins increased from 7% in April to 8.1% in August, while margins at non-supermarket retailers rose from 7.8% to 10.2% over the same period. This “sustained” increase in margins suggests that competition in the road fuel retail market remains weak, the watchdog noted.
Dan Turnbull, senior director of markets at the CMA, expressed concern over the impact on consumers. “While fuel prices have fallen since July, drivers are paying more for fuel than they should be as they continue to be squeezed by stubbornly high fuel margins,” he said.
“We therefore remain concerned about weak competition in the sector and the impact on pump prices. With that in mind, we are pleased the Government is progressing with our recommendations. These measures will empower drivers to find the cheapest fuel prices wherever they are in the UK, increase competition and support the economy – the more people save on fuel, the more they have to spend in other areas.”
Petrol prices rise for fourth consecutive month
