Fuel prices in the UK have increased for the fifth consecutive month, reaching their highest level since September 2024. This post will explain the reasons behind the rising fuel prices, offer information on where to find the lowest prices, and provide tips on how to reduce fuel costs. Additionally, it will discuss whether switching to an electric vehicle in 2025 is a viable option.

Petrol and Diesel Prices Hit New Highs

February 2025 saw another rise in pump prices:

* Petrol rose by 0.65p to 139.65p per litre
* Diesel increased by 0.73p to 146.48p per litre

The cost of refuelling a standard family petrol car has increased to £76.81, up from £73.88 in October. For diesel vehicles, the expense for a full tank has risen from £76.45 to £80.56 over the same period.

What’s Causing the Increase?

There’s no single culprit behind the rise—it’s a mix of several key factors:

1. Crude Oil Prices

Crude oil hit $82 a barrel in January 2025, up from $72 in October. The increase was driven by:

* Cold snaps increasing demand in the Northern Hemisphere
* Fears of supply disruption before the US presidential transition
* Ongoing geopolitical instability, including the war in Ukraine
* Saudi Arabia’s recent oil production cuts

2. Wholesale and Ethanol Prices

Rising wholesale fuel and ethanol costs (used in E10 petrol and B7 diesel) have also pushed pump prices higher.

3. Retail Margins

Retailers have passed on higher wholesale costs, with the CMA (Competition and Markets Authority) previously highlighting a lack of competition in the fuel market.

4. Fuel Duty and VAT

Fuel duty remains frozen at 52.95p per litre (extended until March 2025). VAT (20%) is applied to both the fuel price and the duty, amplifying any increase

Will Prices Fall Soon?

Oil prices and wholesale fuel costs have been decreasing since late February, and the RAC predicts that pump prices will drop as retailers restock at lower rates. Meanwhile, drivers should choose filling stations wisely.

Where to Find the Cheapest Fuel (correct as of 11 April 25):

Supermarket Prices Vary Widely:
Tesco: Petrol: 128.9p/litre, Diesel: 132.9p/litre
Asda: Petrol ranges from 129.7p to 141.7p, Diesel from 134.7p to 149.7p
Morrisons: Petrol: 132.9p–141.9p, Diesel: 138.9p–149.9p
Shell and BP remain among the most expensive options: Petrol over 142p, Diesel over 150p

Regional Tip:

Northern Ireland is consistently cheaper than Great Britain: Petrol by 5.8p/litre, Diesel by 6.8p/litre

How to Cut Your Fuel Bills

While we wait for pump prices to fall, here’s how you can save money right now:

Drive Smarter

* Avoid harsh acceleration and braking
* Combine short trips to improve efficiency
* Maintain proper tyre pressure and don’t overload your car

Shop Around

* Use apps like Petrol Prices to find the cheapest fuel near you
* Don’t assume supermarkets are always the best deal

Choose Wisely When Buying a Car

* Look at miles per gallon (MPG) and overall efficiency
* Consider whether a hybrid or EV might suit your driving habits

Should You Switch to an Electric Vehicle?

Electric vehicles (EVs) are increasingly attractive, but the cost equation is shifting:

Pros:

* Lower running costs per mile
* Fewer emissions and cleaner energy
* Government incentives (depending on location)

Cons:

* Electricity prices have risen significantly since 2022
* Charging costs at home may reduce your savings
* Infrastructure and battery range still matter

EVs still make sense for many drivers, especially if you travel long distances regularly—but crunch the numbers before making the leap.

Final Thoughts

Fuel prices are rising, but driver awareness is improving. By understanding pump price factors and taking smart steps, you can reduce your fuel bills.

To stay ahead of costs, remember to:

* Monitor fuel trends
* Compare prices often
* Adjust your driving habits
* Consider more efficient or electric vehicles for long-term savings.