Are fuel prices going down?

Are fuel prices going down or are they still at a record high...

woman filling her car up at the petrol station
(Image credit: getty images)

Amid record fuel price highs, motorists will understandably be wondering are fuel prices going down again. And there may have been a smidgen of hope this week as petrol prices went down by 0.1p, - but it’s not necessarily a sign that prices are set to fall significantly.

Drivers keeping a close eye on the cost of filling up their motors may have felt some relief seeing a change in price for the first time in six weeks - with data from Experian showing petrol at UK forecourts fell by 0.3p on both Saturday (2 July) and Monday (4 July). These were the first daily price cuts seen since 21 May.

Unfortunately, even though we saw these drops, Sunday (3 July) hit a new record price of 191.53p for petrol. 

Diesel drivers will have seen prices fall by a fraction of 1p every day since Sunday.

Petrol and diesel prices continue to fluctuate daily, but it could be months before we see a significant change in fuel prices, leaving motorists scrambling for ways to save money on fuel (opens in new tab) as the price of filling up the average family car tops £100.  

Will fuel prices go down as wholesales prices drop? 

Not necessarily. While wholesale prices of both petrol and diesel have fallen - this week, so far, wholesale petrol prices are 15p lower than the record highs at the start of June-  savings are not being passed onto retailers fast enough. 

AA (opens in new tab) fuel spokesman Luke Bosdet said: “Falling pump prices provide the first piece of good news in this cost-of-living crisis, but the reductions should be much bigger and should have started last week if not sooner.

“The question now is how much of the potential savings will be passed on to the consumer.

“As usual, the fuel trade shows itself very reluctant to pass on lower costs and give relief to hard-pressed motorists.”

In March, the former chancellor Rishi Sunak announced a 5p per litre reduction in fuel duty, but it has done little to prevent soaring prices.

How have petrol and diesel prices changed in the cost of living crisis?  

At a time where prices are rising all around, on everything from energy to food, and of course fuel. This table* shows how prices have gone up from January 2022 to 30 June 2022. 

Petrol prices

Start of the year: 3 January 2022Day after fuel duty cut: 24 March 202230 June 2022
Average pump price 145.55p 164.59p 191.43p
Cost to fill a 55-litre car £80.05 £90.52 £105.29
Cost per mile (based on 40mpg) 16.52p 18.68p 21.73p

Diesel prices

Start of the year: 3 January 2022Day after fuel duty cut: 24 March 202230 June 2022
Average pump price148.75p 178.13p 199.05p
Cost to fill a 55-litre car £81.81 £97.97 £109.48
Cost per mile (based on 40mpg) 16.88p 20.22p22.59p

*Source: RAC

Kalpana Fitzpatrick
Kalpana Fitzpatrick

Kalpana is an award-winning journalist with extensive experience in financial journalism. Her work includes writing for a number of media outlets, including national papers and well-known women’s lifestyle and luxury titles, where she was finance editor for Cosmopolitan, Good Housekeeping, Red and Prima. She started her career at the Financial Times group, covering pensions and investments. As a money expert, Kalpana is a regular guest on TV and radio – appearances include BBC One’s Morning Live, ITV’s Eat Well, Save Well, Sky News and more.