15 April 2024

UK fuel prices are increasing, as the price gap between petrol and diesel narrows

UK petrol and diesel prices have increased in 2024, with an average rise of 2p per litre in March alone. The average cost of petrol is now 146.5p per litre and diesel has reached and average cost of 155.99p per litre, which is hitting drivers’ wallets at the pumps.

Prices have risen following a 5% surge in oil prices globally, which has coincided with a rise in demand for fuel in the US, and a weak British Pound, which combined has resulted in the wholesale cost of petrol now matching the price of diesel. Because forecourt pump prices lag wholesale prices, this change has yet to be felt by drivers, but it is expected that the current 7p gap between the two fuels will close for drivers within weeks.

Unlike 2023, when pressure groups were campaigning for fuel retailers to lower their margins for the benefit of the UK’s drivers and economy, this current price rise does take into account a lowering of retailer margins to shield drivers from rising prices, with the latest retailer margins now falling to 8p per litre on petrol from the 10.5p average that was found last year.

For drivers looking to save money, the UK’s four biggest supermarkets, Asda, Tesco, Morrisons and Sainsbury’s continue to offer the most affordable pump prices overall, however if you are concerned about the rising cost of fuel for your fleet, a driver’s fuel card can offer not only discounts at the pumps, but also greater traceability of spend.

To find out more about how a fuel card could help your business, get in touch with Activa today.