Petrol prices fall to lowest levels since 2021
Petrol prices have fallen to their lowest level since July 2021, according to the RAC.
It has reported that the average price of a litre of petrol is now 131.91p, after falling by more than 3p in January.
The drop in average prices comes after a 2p drop last month, meaning average prices across the UK have come down from 137.17p at the beginning of December.
Meanwhile, diesel also came down by 3p in January, falling to 140.97p, but remains above its average price of 134.36 in July 2021.
RAC head of policy Simon Williams said: “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.”
