19 June 2024
An extraordinary fall in the pump price of petrol, which could eventually take the UK average to 140p a litre, has already knocked £2.50 off the typical cost of filling up, the AA Fuel Price Report notes. At least 500 forecourts are already charging 139.9p or less for a litre of petrol.
Having reached a high of 150.1p a litre in late April, Competition and Markets Authority (CMA) data shows that petrol fell to 145.2p a litre on Tuesday. This follows a two-stage decline in wholesale costs: 4.5p from the last week in April to the first in May and then another 4p by early June. With VAT factored in, that makes the 8.5p fall more than 10p at the pump and now brings a UK average of 140p a litre into view.
Gasoline stocks in northern Europe have surged 27%, according to market reports late last week. Falling demand from the US, with fears of a weak start to their summer motoring period, is one of the big drivers of this unseasonal fall in UK petrol wholesale costs.
Source: fuelpricesonline.com
The last time the average petrol pump price was at 145.2p a litre was mid March, and the last time at 140p a litre was in January.
Analysis of CMA data from its voluntary price reporting scheme shows that, while there were less than 75 forecourts offering petrol at less than 140p a litre in the first week of June, there are now 500. More than 340 of them are supermarket-branded sites, with the Motor Fuel Group pitching in with more than 100 forecourts at that price level.
Falling EV charging costs look to trump petrol-price slump
While owners of petrol cars are enjoying lower fill-up costs, a dramatic reduction of 5p per kilowatt hour at the fastest chargers of electric vehicles, both during peak and off-peak periods, maintains an edge over petrol.
Also, July’s cut in the electricity price cap cut is expected to make charging an EV at home even cheaper. At present, using the current price cap level* (lower price tariffs are offered by suppliers), powering a small car costs the equivalent of 5.4p a mile. That compares with the 13p-a-mile cost of fuelling the same small car with petrol.
The tables below average the cost of recharging a small EV at the end of May, using the various speeds of charger a motorist might come across. Updating the petrol price from around 148p a litre at the end of May to 145.8p more recently lowers the fuel cost per mile for the small car from 13.16p to 12.96p.
| Charger type | Speed (kW) | May Ave (p/kWh) | Apr Ave (p/kWh) | Difference (p/kWh) | Cost to add 80% charge | Pence per mile (p/mile) |
| Domestic | Up to 7kW | 24 | 24 | 0 | £9.60 | 5.42 |
| Slow | Up to 8kW | 52 | 52 | 0 | £20.80 | 11.75 |
| Fast | 8-49 kW | 57 | 57 | 0 | £22.80 | 12.88 |
| Rapid | 50-149 kW | 71 | 71 | 0 | £28.40 | 16.05 |
| Ultra-rapid | +150 kW | 77 | 78 | -1 | £30.80 | 17.40 |
| Petrol | 149.00 ppl | 149.90 ppl | -1.90 ppl | £47.63 | 13.16 | |
| Charger type | Speed | May Ave (p/kWh) |
Apr Ave (p/kWh) |
Difference (p/kWh) |
Cost to charge to 80% | Pence per mile (p/mile) |
| Slow Off-Peak | Up to 8kW | 45 | 45 | 0 | £18.00 | 10.17 |
| Slow Peak | Up to 8kW | 67 | 67 | 0 | £26.80 | 15.14 |
| Fast Off-Peak | 8-49kW | 75 | 75 | 0 | £30.00 | 16.95 |
| Fast Peak | 8-49kW | 79 | 79 | 0 | £31.60 | 17.85 |
| Rapid Off-Peak | 50-149kW | 75 | 75 | 0 | £30.00 | 16.95 |
| Rapid Peak | 50-149kW | 79 | 79 | 0 | £31.60 | 17.85 |
| Ultra-rapid Off-Peak | +150kW | 51 | 56 | -5 | £20.40 | 11.53 |
| Ultra-rapid Peak | +150kW | 59 | 64 | -5 | £23.60 | 13.33 |
| Petrol | 148.00 ppl | 149.90 ppl | -1.90 ppl | £47.36 | 13.16 | |
** See Notes to Editors for calculations methodology
Diesel takes a dive also
Average diesel pump prices have also been falling rapidly, as might be expected without the winter pressures of heating oil demand. On Tuesday, they sat at 150.4p a litre across the UK, coming down from a high of 158.3p in the latter half of April.
The 5p-a-litre price difference with petrol at the pump compares with 1.5p at the wholesale level at the end of May and a 4.5p cost gap yesterday.
Source: fuelpricesonline.com
“Normally, at this time of year, drivers would be gripping their steering wheels in anticipation of a summer surge in petrol prices. The US summer motoring season’s extra demand for gasoline traditionally means bad news for holiday drivers in this country - before demand and pump prices eventually fall off from September onwards,” says Luke Bosdet, the AA’s spokesman on road fuel prices.
“However, this summer, the petrol commodity market has been flipped on its head. Pump prices remain historically high but drivers at least have something to smile about – for now.
“With at least 500 forecourts now charging less than 140p a litre for petrol, or 5p below the average, there are retailers with competitive prices out there. Tesco has 120 of them and the independent Motor Fuel Group has more than 100 others.
“Yes, the fuel retailers have taken their time to get going but the CMA fuel price transparency scheme is now beginning to show its potential. Directing drivers to the cheap fuel stations, thus putting pressure on the others, will have a much greater impact on pump prices.”
Bosdet adds: “The lower electricity price cap versus weakened petrol wholesale costs is an intriguing dynamic. Just when petrol prices looked like they might close the cost-per-mile gap with domestic EV charging, the new price cap steps in.
“Judging from the number of fuel trade reports announcing new EV charging installations at forecourts, the fuel stations and Petrol Retailers Association (FUEL PRICING: PRA COMMENTS | Press Releases | PRA (ukpra.co.uk)) are feeling the pressure. No doubt some of the extra investment costs will be passed on to petrol and diesel drivers, which is ironic because the higher pump prices will spur more car owners to switch to electric - saving money hand over fist with charging at home.”
* The domestic rate tracks the OFGEM Energy Price Cap: Changes to energy price cap between 1 April to 30 June 2024 | Ofgem
** Average prices are the PAYG options without connection fee as at 30 May 2024. Subscriptions are available for all charge point speeds which can unlock a cheaper p/kWh, however rates vary across provider.
EV calculations are based on adding 80% to a Vauxhall e-Corsa, 50kW, with a WLTP range of 222 miles. Adding 80% range equates to 178 miles of range. Vauxhall e-Corsa specifications here: New_Corsa-CorsaYes_PSG_3_April_2024_Library.pdf (vauxhall.co.uk)
Petrol calculations are based on a Vauxhall Corsa 1.2L (75PS) Petrol with a 40 litre tank. 80% refuel = 32 litres.
Petrol: 32 litres @ 148.00 ppl = £47.36. Combined MPG of 51.4 = 360 miles at 13.16 p/mile.
Vauxhall Corsa specifications here: New_Corsa-CorsaYes_PSG_3_April_2024_Library.pdf (vauxhall.co.uk)