Analysis of RAC data has revealed that fuel has dropped to its lowest price since the summer of 2021
The cost of petrol has dropped to its lowest level in five years, new data has confirmed. Analysis of RAC figures has revealed that fuel has dropped to its cheapest rate since the summer of 2021.
The breakdown states a litre of unleaded now averages 131.91p around the UK, having fallen more than 3p in January. The last time petrol was under 132p was on July 2, 2021, when it averaged 131.81p, the RAC says. An average full tank of petrol now costs £72.55, with the reduction driven by oil dipping below the $60 a barrel mark on January 7.
Diesel has also come down by 3p to 140.97p in January, but the RAC says that is still several pence a litre above its price at the start of July 2021 – 134.36p. A full tank of diesel now costs £77.53. Stay in the know by making sure you’re receiving our daily newsletter.
RAC head of policy Simon Williams said: “Seeing the price of petrol dip under 132p is a genuine boost for drivers, rewinding prices to those we last saw four and half years ago.
“And with even cheaper prices available depending on where drivers fill up, this is a positive start to the year for household budgets, especially so soon after Christmas.
“The Competition and Markets Authority’s 2025 annual road fuel monitoring report published in December said competition in the sector had not strengthened and retailer margins remained at historically high levels, and in some cases had increased.
“It also confirmed, contrary to what the fuel retailers trade association had been arguing, that increased operating costs were not the reason for average margins on petrol and diesel being higher.
“Our analysis of RAC Fuel Watch data also shows a similar picture of retailer margins.
“So, had retailers passed on more of the savings they’ve benefitted from when buying new fuel supply on the wholesale market, the January price reductions would probably have been bigger.”
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