Petrol prices UK: RAC urges action as fuel, diesel costs surge by 10p per litre in 2024 - compare fuel prices

The average cost of petrol and diesel has increased by 10p per litre so far this year, new figures show. The RAC said, in April alone, the average cost of a litre of petrol went up by 3p to 150.0p.

And with average prices for diesel increasing by 2p per litre to 157.8p in April, it said that drivers are being "seriously overcharged for diesel." The cost of filling a typical 55-litre family car has increased by around £5.50 due to rising pump prices since the beginning of the year.

In order to address "glaring issues" with fuel retailing, the RAC is calling on the Competition and Markets Authority (CMA), an independent non-ministerial government department, to take action.

It wants the regulator – which is responsible for monitoring prices and will oversee the incoming PumpWatch price transparency scheme – to tackle “unfair retailer margins which lead to drivers getting a raw deal”.

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The RAC said if the biggest fuel retailers charged “fairer margins” it would benefit drivers in several ways, such as:

• Ending the “postcode lottery” which means some companies charge “wildly different prices” across locations.
• Stop so-called rocket and feather pricing, where pump prices surge when wholesale costs rise, but fall slowly when wholesale costs decline.
• Reduce fuel prices in Britain to levels in Northern Ireland, where they are consistently 5p per litre cheaper.

Despite the CMA expressing concern about retailer margins earlier this year, the average margins for a litre of petrol and diesel is 9.5p and 17.5p respectively, according to the RAC. The long-term average margin for both fuels is around 8.0p.

RAC fuel spokesman Simon Williams said: “Drivers are once again having to dig deep just to go about their daily lives. Our data shows petrol and diesel have now gone up 10p a litre so far this year on the back of further increases in April of 3p and 2p respectively.

Read more: The best time to buy petrol - do prices really change throughout the day?

“Some of this is down to the oil price and the pound-to-dollar exchange rate making wholesale petrol more expensive for retailers to buy. But unfortunately, it’s also very apparent that retailers are making massive margins on diesel.

“Worryingly, the CMA’s warning shot about higher retailer margins at the end of March appears to have fallen on deaf ears, meaning drivers are once again being seriously overcharged for diesel.”

The news comes just days after Shell unveiled further returns for shareholders after better-than-expected earnings as the oil giant faces mounting investor pressure over its actions to tackle climate change.

The group reported underlying earnings of 7.7 billion US dollars (£6.1 billion) for the first three months of 2024, down from 9.6 billion US dollars (£7.7 billion) a year earlier. But the result was better than forecast and 6% higher than earnings in the previous quarter.

The FTSE 100 firm announced another 3.5 billion US dollars (£2.8 billion) in share buybacks for the second quarter, on top of the 3.5 billion US dollars (£2.8 billion) completed in the final three months of 2023.

How can I compare and find the cheapest fuel prices near me?

To compare and find the cheapest petrol prices near you today, you can use dedicated websites such as PetrolPrices, CompareTheMarket or Confused. These platforms provide real-time information on fuel prices across various locations in the UK.

You could also visit the websites of major petrol station chains like BP, Shell, Esso, and others. Some of these websites have features that allow you to find the nearest station and check current fuel prices.

Also keep an eye on local news sources, as they may occasionally feature updates on petrol prices or promotions happening in your area. Community forums and social media groups can also be valuable sources for real-time information.