Festive fuel! Petrol prices to drop to their lowest levels since the pandemic this Christmas period

Motorists heading into the festive season are set to enjoy the cheapest Christmas fuel prices since the pandemic, according to the RAC’s latest Fuel Watch report.

Prices are significantly lower compared with 2023, with E10 petrol costing 136.5p on average – 10.5p down year-on-year. 

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It will be car drivers noticing the biggest difference, with a typical 55-litre refill of unleaded coming in £6.60 cheaper than last year. Compared to two years ago, the savings are even starker, with petrol £12.90 cheaper per tank. 

For motorcyclists the changes are likely to be less noticeable fill-to-fill, with the cost to brim a typical 18-litre bike tank now coming in at £1.89 less. Even so, for a rider covering 10,000 miles annually (assuming a 45mpg average), the changes represent a saving of £106.07. 

The RAC’s Simon Williams commented: “We’re still conscious that prices at the pumps could be slightly cheaper if retailer margins were lower. So, it was disappointing to see last week that the Competition and Markets Authority has once again expressed concern about a lack of competition among fuel retailers. This comes on the back of the CMA concluding drivers were overcharged by £1.6bn in 2023. 

“We hope the Government’s commitment to introducing a mandatory fuel price finding scheme next year will spark competition and lead to a fairer fuel retailing landscape that delivers better value.”