Fuel prices fall for first time in six months

Richard Aucock, Contributor
Fri, 04 Apr 2025

Petrol and diesel prices fell for the first time in six months during March, taking them back down to levels last seen in December 2024.

It’s well-timed relief for drivers at the start of the Easter school holidays, in advance of one of the year’s biggest bank holidays in two weeks’ time.

RAC Fuel Watch reports petrol ended the month at 136p a litre, nearly 4p a litre down on the cost at the start of the month.

Diesel prices fell too, falling by a round 4p a litre to end the month at 142.5p a litre.

This means it’s now £2 cheaper to fill the average 55-litre petrol car tank, and £2.17 cheaper for diesel car owners.

However, the RAC adds that motorists could save even more if they shopped around. Supermarkets are now charging less than 126p for a litre of unleaded, which is 10p less than the UK average.

Diesel drivers can save 11p a litre – that’s £6 per tank – by shopping around.

Prices fell because the cost of oil has dopped below $70 a barrel, due to concerns about the global economy. This means wholesale fuel prices are cheaper too.

But the RAC believes the extent of wholesale falls mean petrol and diesel should be cheaper still.

Some retailers have chosen to take larger margins on the fuel they sell, stopping pump prices from falling further.

This was acknowledged by the Competition and Markets Authority (CMA) in its latest report, says RAC head of fuel policy Simon Williams.

"Ultimately, it’s drivers who lose out, especially those who live in areas where there’s little or no competition among forecourts. We hope the CMA’s new power to scrutinise prices will be the catalyst for fairer prices everywhere, along with the government forcing retailers to publish prices within 30 minutes of changing them," he says.

But Williams warns that today’s cheaper prices might be short-lived.

"Crude oil prices are once again starting to edge up, and if this is sustained, it’s likely to lead to higher wholesale costs and the end of falling pump prices."

Ask HJ

Are there any petrol cars that are £20 to tax?

With all the car tax increases I am just checking what are the cheapest petrol cars on the road as of 1st April 2025. Are there any vehicles that are zero tax or only £20 tax?

You can read more about VED rates from April 2025 here - https://www.honestjohn.co.uk/car-tax/ - but as before, rates for cars registered between 2001 and 2017 are still based on CO2 emissions, so cars that were eligible for zero rate or low rates are still the cheapest. Band A cars will pay £20 from April 2025 instead of zero, while Band B and Band C cars will remain at £20 per year and £35 a year respectively. You can read our guide to low tax cars here - https://www.honestjohn.co.uk/guides/cars-with-zero-road-tax/ which includes pre-2017 versions of the Volkswagen Golf, Ford Fiesta, Nissan Qashqai, Toyota Aygo and BMW 3 Series.

Answered by David Ross

More Questions