UK drivers have been hit by a continued rise in fuel prices, with the price of petrol and diesel seeing yet another increase for the fourth consecutive month, according to the latest analysis from the RAC.
Since the start of October 2024, the price per litre of petrol has risen by 5p, while the cost of diesel has surged by 6p. This sustained price hike comes as a result of several factors, most notably a significant spike in global oil prices and a weakening of the pound against the US dollar.
Mid-January saw oil prices exceed 80 US dollars per barrel for several days, prompting the increase in fuel costs. The jump in oil prices coupled with the currency exchange rate fluctuations has made wholesale fuel more expensive for retailers, which in turn impacts the price drivers pay at the pumps.
At the close of January 2025, the average cost of petrol was recorded at 139.0p per litre, while diesel stood at 145.7p per litre. This represents a significant increase from previous months, adding an additional strain on household budgets already under pressure from rising costs elsewhere.
RAC Head of Policy, Simon Williams, voiced his concerns about the impact of these ongoing price hikes on UK motorists. He commented, “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.”
The long stretch of increasing fuel prices has caused considerable discomfort for drivers, many of whom are now paying more for a tank of fuel than they have in several months. Williams hopes that this trend will not continue indefinitely and that the prices will eventually start to ease.
“There is still hope that prices might start to fall again, but much depends on global oil supply and demand,” Williams added. “While oil prices are notoriously volatile, there is some optimism among analysts that the price of oil may dip in the coming months, potentially bringing fuel prices down as well.”
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Several analysts are predicting that the average oil price for 2025 could be closer to 70 US dollars per barrel, which would provide some relief for motorists in the latter half of the year. However, with global geopolitical tensions, OPEC decisions, and unpredictable climate conditions all playing a role in oil prices, the outlook remains uncertain.
For now, drivers are left grappling with the uncertainty of rising fuel prices, with no immediate relief in sight. The ongoing strain on family budgets has led to calls for increased support from the government and the industry to ease the financial burden on consumers.
Some have even suggested that a more comprehensive approach to reducing reliance on fossil fuels, including expanding the availability and affordability of electric vehicles, could be part of a longer-term solution. However, the transition to greener technologies is expected to take years, leaving many drivers with little choice but to continue paying higher prices at the pump in the short term.
With no immediate end in sight, motorists across the UK will be watching closely to see whether oil prices stabilise or continue their upward trajectory, further impacting fuel costs and the wider cost of living.
