Diesel prices: UK fuel, petrol highest in EU as RAC tells retailers to cut costs - compare local prices today
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Government figures show diesels make up around a third of all cars licensed in the UK
According to new analysis, UK motorists are paying the highest diesel prices in Europe. The RAC, which conducted the research, said there is "no good reason" for British fuel retailers not to reduce pump prices.
The analysis - based on figures from the European Commission and the UK’s Competition and Markets Authority - revealed that the average price of a litre of diesel at UK forecourts is 155p.
This is 5p more than in Ireland and Belgium, which both have the second highest diesel prices on the continent at 150p per litre.
Despite a 5p per litre cut in fuel duty in spring 2022, the UK still has Europe’s joint highest rate of duty on diesel at 52.95p per litre, shared with Italy. However, Italy's average pump price is 7p per litre cheaper at 148p.
France's duty rate is just 1p per litre lower than the UK's, but its average diesel price is 9p per litre cheaper at 146p. In addition to the high fuel duty, the UK imposes a 20% VAT on fuel, further increasing the cost at the pump.
In many areas of the UK, particularly where supermarkets do not dominate the market, there is less competition among fuel retailers, which allows retailers to maintain higher prices.
Government figures show diesels make up around a third of all cars licensed for use in the UK – 11.4 million. The vast majority of commercial vehicles such as vans and lorries are also powered by diesel.
RAC fuel spokesman Simon Williams described having Europe’s most expensive diesel as “a very dubious honour” for the UK. He said: “The average retailer margin on diesel – that’s the difference between the delivered wholesale price and the retail price before VAT – is 18p.
“That’s a shocking 10p more than the long-term average. The average price of a litre of diesel should really be down to around the 145p level if retailers were charging fairer prices.
“The margin on petrol is also, in our view, unreasonably high at 13p. We can see no good reason why retailers in Britain aren’t cutting their prices at the pumps.
“It’s important to note that in Northern Ireland, where there is greater competition for fuel in the absence of supermarket dominance, the average price of diesel is just 144.9p – 10p less than the UK average, and petrol is 6p cheaper at 142.4p.”
The UK’s petrol is only the 11th most expensive in Europe at an average of 149p per litre. Europe’s most expensive petrol is in Denmark, where drivers are typically charged 175p per litre.
Independent fuel retailers in the UK have said they are facing various cost increases, such as business rates, energy bills and wages.
Williams added: “There is cause for hope for fairer fuel prices in the future as the Digital Markets, Competition and Consumers Act became law on Friday, giving new powers to the Competition and Markets Authority to closely monitor road fuel prices and report any sign of malpractice to the Government.”
High diesel prices could have a positive effect in the long-term, as they make electric vehicles (EVs) more attractive economically, potentially accelerating their adoption as consumers and businesses become more inclined to invest to avoid high fuel costs.
Higher diesel prices can also encourage greater use of public transportation, which is generally more energy-efficient and has lower per capita emissions compared to private vehicle use.
How can I compare and find the cheapest 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.