Petrol prices have surged back to their highest level of the summer, hitting levels not seen since November 2022 and piling fresh pressure on motorists ahead of the August bank holiday weekend.
According to the AA, petrol now averages 161.6p per litre across the UK, while diesel has climbed to 183.4p per litre, its highest level since the beginning of June. The increase comes just weeks after the Competition and Markets Authority (CMA) criticised the fuel retail sector for a lack of effective competition, accusing many retailers of relying on "passive pricing strategies" that have helped keep fuel margins elevated.
Wholesale costs remain below earlier peaks
Despite the rise at the pumps, wholesale petrol prices remain below the peaks recorded earlier this year. The wholesale cost currently stands at around 68.5p per litre, having recovered following a rise in oil prices since early August. However, it remains lower than the levels seen in late April and early May when wholesale prices exceeded 72p per litre.
The gap between wholesale and retail prices has raised questions over pump pricing, according to the AA. Petrol currently costs almost 2p per litre more than the 159.7p per litre average recorded at the end of May, despite wholesale costs not returning to their earlier highs.
Regional differences and driver options
With motorists preparing for bank holiday travel, average petrol prices have now returned to 161.6p per litre and could increase further, even though wholesale costs remain below levels seen in May. The AA said some areas of mainland Britain were selling petrol for as much as 10p per litre below the national average, largely due to retailers continuing to reflect the wholesale price drop seen earlier this month.
Luke Bosdet, the AA’s spokesman said: "In many ways, UK pump pricing is back to its worst: too often over-priced and uncompetitive, with too many communities denied road fuel at a reasonable price - hence the competition watchdog’s stinging criticism."
"On the flipside, the means to beat this behaviour are now in place, for those prepared to use Fuel Finder tools, such as the AA App, to locate the forecourts with fair prices. The ability to scroll the map on a smartphone (as opposed to the old restriction of searching only a handful of locations each week) and spot the cheaper fuel stations in towns next door, along a commute or on a longer journey allows drivers to fight back. It’s up to them to take advantage of this new pump-price transparency."
"Current examples of towns where motorists can buy petrol and diesel at around 10p a litre or £5 a tank cheaper than average show that just one competitive forecourt can often pull down the price of fuel locally, including at nearby supermarkets. Drivers just need to find them and go to them."
