London Daily

Focus on the big picture.
Monday, Dec 29, 2025

Petrol cost hit new high every day for past month

Petrol cost hit new high every day for past month

Petrol prices have hit new record highs every day for the past month, according to motoring organisation the RAC.

The cost to fill a family car now stands at about £103 for petrol, and £106 for diesel, it said.

The war in Ukraine and moves to reduce dependence on Russian oil have helped drive up fuel prices, putting households under pressure as food and energy bills also soar.

The average petrol price is now 186.59p per litre, with diesel at 192.48p.

The RAC called on the government to cut fuel taxes to ease the cost burden on motorists, and to help lower the cost of living.

"New records in the average price of petrol have been set every day for the last month, with a litre rising 21p, which has added more than £11 to a tank," said RAC fuel spokesman Simon Williams.

He said that RAC analysis of wholesale diesel prices indicates that diesel could hit "a previously unthinkable average of £2 a litre", and that "unfortunately, it has already crossed this threshold at motorway services".

However, rival motoring organisation the AA said wholesale fuel costs had been steady recently, while pump prices had been rising.

"Another penny on petrol is a surprise given that wholesale costs have been level if not lower since the Jubilee," said Luke Bosdet, the AA's spokesman on fuel prices.

He said if petrol continues to go up at the same rate heading into the weekend, "the government has yet another reason to call the retailers out".


He said that diesel may yet hit £2 per litre, but "why invite the fuel trade to speed up the pump price rises?"

"It's a volatile market, nothing is guaranteed until it happens," he added.

The Treasury cut the tax in March by 5p per litre in a bid to help motorists, and has asked the Competition and Markets Authority (CMA) to investigate whether that cut is being passed on to motorists quickly enough.

The RAC called on the government to temporarily lower VAT on fuel, and make a further cut in fuel duty, saying the rise in VAT takings since March was now more than cancelling out the fuel duty cut.

So far the government has ruled out cutting VAT, saying higher receipts from fuel price increases will be largely offset by lower receipts from household spending less on other goods and services.

The government has put together a £37bn package to help families as energy, food and fuel bills soar.

More than eight million UK homes on benefits are set to receive £326 by the end of July, with a second payment of £324 in the autumn.

Newsletter

Related Articles

0:00
0:00
Close
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
×