Petrol prices at a four-year low, but probably won't stay cheap for long
The average price to fill up a 55-litre petrol tank is now just over £72.50 – £3 cheaper than it was at the beginning of December
There's relief for drivers at the pumps as the price of petrol and diesel has fallen to the lowest point in over four-and-a-half years. Experts attribute the dip to a downturn in the price of crude oil, although escalating international tensions could send costs skyrocketing.
According to the RAC, the price of petrol now sits at an average of 131.91 pence per litre – the lowest it’s been since July 2021 when it went as low as 131.81 pence. Diesel, in much the same vein, fell by three pence since the start of January and is now setting back those using the black pump 140.97 pence per litre. However, this is still marginally higher than it was back in June 2025.
Nevertheless, head of policy at the RAC, Simon Williams, called the lower prices “a genuine boost for drivers”, saying that “with even cheaper prices available depending on where drivers fill up, this is a positive start to the year for household budgets.”
All of this now means that the price to brim the tank of your typical 55-litre family car now sits at £72.55 for petrol and £77.53 for diesel models. In comparison, a full charge of an electric car with a 60kWh battery pack sits at £16.61 at the domestic energy price cap, versus an average of £46.20 when utilising public rapid charging infrastructure.
According to the RAC, much of the petrol price drop can be attributed to a drop in the price of crude oil; this has reduced from just under $74 per barrel six months ago to around $60 a barrel in January 2026. Relief could be short-lived, though, as recent tensions between the U.S and Iran have seen the price of oil once again spark to over $67 at the end of January, with the potential for costs to rise even further.
Williams also points out: “Had retailers passed on more of the savings they’ve benefited from when buying new fuel supply on the wholesale market, the January price reductions would probably have been bigger.” A report by the UK’s Competition and Markets Authority in December 2025 described retailer margins as “historically high”, stating that firms’ excuse of increased operating costs isn’t sufficient as an explanation.
Last year the Government was expected to roll out its new FuelFinder app as part of the Pumpwatch scheme; this, when it finally releases, will give drivers access to live pricing data from all fuel retailers, something that it's hoped will increase competition. A release date is yet to be confirmed, though.
Don't miss out! See more of Auto Express in your Google Top Stories. Click here...
