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When Will Fuel Prices Go Down UK?

Fuel prices in the UK have been a consistent concern for drivers and businesses alike, influenced by global oil markets, taxation, and geopolitical tensions. With petrol averaging 150p per litre and diesel slightly higher at 160p, managing fuel costs has become a priority with many wondering when will fuel prices go down UK?

Alternatives like Hydrotreated Vegetable Oil (HVO) fuel are emerging, though they come at a premium, while retailers like Shell, Costco, and major supermarkets offer varying prices to entice customers. By understanding historical trends and exploring cost-saving strategies, drivers can better navigate the uncertainty surrounding UK fuel prices and plan for the future.

Fuel prices are a hot topic in the UK, with fluctuations affecting households, businesses, and entire industries. Whether it’s planning a road trip (read about budget friendly group travel with 6 seater van hire here) or budgeting for logistics, the cost of fuel can have a ripple effect on many aspects of life. But with prices soaring in recent years, many are asking: when will fuel prices go down UK? 

We will explore the current state of fuel prices UK, (please note any figures provided represent the current scope in March 2025, these figures and projections do change day by day*) alternative options like HVO fuel, historical trends, and what to expect in the future. We’ll also take a closer look at specific retailers such as Shell, Costco, BP, Sainsbury’s, Asda, and Tesco to give you a complete picture.

HVO Fuel Disclaimer

Using the fuel in the wrong vehicles can invalidate the vehicle’s warranty and cause irreparable damage. Please contact us directly if you are thinking of running a hirefleet vehicle on HVO so we can advise on its suitability. Before you can use it in one of our vehicles you must obtain approval from hirefleet in writing. This will help avoid causing any inadvertent damage and subsequent cost that you, the customer, will be liable for.

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Current Fuel Prices 2025 In The UK

The current average price of petrol and diesel in the UK is heavily influenced by global oil markets, taxation, and supply chain issues. As of recent months, the average price of petrol has hovered around 150p per litre, while diesel is slightly higher at 160p per litre. Prices also vary regionally, with urban areas often seeing higher costs due to increased demand and distribution challenges.

Other factors include:

  • Fluctuations in global crude oil prices.
  • Seasonal demand shifts.
  • Geopolitical tensions affecting supply chains.

HVO Fuel Prices UK 2025

Hydrotreated Vegetable Oil (HVO) is gaining popularity as a renewable diesel alternative. Known for its lower carbon emissions, HVO fuel is being adopted by businesses, particularly in response or preparation to increased regulation surrounding environmental concerns.

Currently, the HVO fuel price per litre UK ranges between £1.50 per litre and £2.00 per litre, depending on the supplier and location. While it’s pricier than traditional diesel, government incentives could help make it a more viable option in the future.

Shell Fuel Prices UK 2025

Shell is one of the UK’s leading fuel retailers, offering a range of fuels, including premium options like Shell V-Power. Shell’s prices tend to be on the higher end due to their focus on high-quality, performance-enhancing fuels. Prices vary by location, but Shell often competes closely with other premium fuel providers.

Costco Fuel Prices UK 2025

Costco fuel stations are known for their competitive pricing, often significantly lower than other retailers. However, fuel is only available to Costco members. Diesel and petrol prices at Costco can be 5-10p per litre cheaper than the national average, making it a popular choice for bulk buyers and frequent drivers. Costco fuel UK price

UK Fuel Prices History

Over the years, UK fuel prices have seen dramatic changes. Key moments include:

  • The 2008 financial crisis, which caused a significant spike in prices.
  • The COVID-19 pandemic in 2020, when demand plummeted, leading to record-low prices.
  • Recent geopolitical events, such as the war in Ukraine, which have driven prices to unprecedented highs.

Government fuel duties and VAT also play a significant role in long-term price trends, accounting for a significant portion of the price per litre.

Best Diesel Prices 2025 Comparing Major UK Retailers

BP Diesel Price 2025

BP is known for its high-quality diesel fuels. The Diesel price at BP is often priced slightly higher than average. Their premium options cater to drivers looking for enhanced performance and engine protection. The Diesel BP price is usually and consistently slightly higher than average prices.

Sainsbury’s Diesel Price 2025

Sainsbury’s is popular for offering competitive diesel prices, the price of diesel at Sainsburys is often accompanied by loyalty rewards or discounts linked to grocery shopping. The Diesel price Sainsburys is typically around the national average.

Asda Diesel Price 2025

Diesel prices Asda are frequently the lowest diesel prices among UK supermarkets. Asda’s “pay at pump” system makes it a convenient and cost-effective choice for many drivers.

Tesco Diesel Price 2025

Tesco diesel prices are competitive, and their Clubcard rewards program adds extra value for loyal customers. The diesel price in Tesco frequently matches or undercuts prices from other major supermarkets.

The Cost of Fuel in the UK by Volume

Fuel prices are typically quoted per litre, but understanding the cost per gallon can help with international comparisons.

  • 1 gallon fuel price UK of petrol (approximately 4.55 litres) currently costs around £7 per gallon to £7.50 per gallon.
  • Diesel costs slightly more, at £7.50 per gallon to £8 per gallon.

For context, UK fuel prices are among the highest globally due to taxation and import reliance.

When Will UK Fuel Prices Go Down?

The million-pound question: when will prices drop? While no one can predict with certainty, several factors could lead to a decrease:

  • Stabilisation of global oil markets: Reduced geopolitical tensions and increased production could lower crude oil prices.
  • Adoption of renewable fuels: Wider use of HVO and other alternatives could reduce demand for traditional petrol and diesel.
  • Government intervention: Fuel duty cuts or subsidies could offer short-term relief. Although this may not be the best direction in the long term. 

Some experts suggest that prices may stabilise in the coming years, but significant drops are unlikely without major political, economic or technological shifts. 

Unfortunately the UK fuel prices are amongst the highest globally and significant changes are needed before UK citizens and businesses start to get a fair price on their fuel considering the global market. 

However if you're planning a trip and looking to save some money, checkout our post on how to save on travel with self drive van hire.

Practical Tips for Managing Fuel Costs And Finding The Cheapest Place To Get Fuel

Until prices drop, here are some tips to help manage fuel expenses:

  1. Drive efficiently by avoiding harsh acceleration and maintaining steady speeds.
  2. Use fuel price comparison apps to find the cheapest stations near you.
  3. Take advantage of membership discounts at Costco or supermarket loyalty programs.
  4. Consider switching to HVO fuel or hybrid/electric vehicles to reduce long-term costs, although other costs will need to be considered.

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Q: When will fuel prices decrease in the UK in 2025?

Fuel prices may decrease slightly in summer 2025 due to lower crude oil prices, with Brent crude falling to £53.71 per barrel, though volatility from geopolitical events could delay reductions.

Q: Why haven’t UK fuel prices dropped with lower oil prices?

Pump prices lag behind crude oil price drops by weeks due to wholesale fuel supply chains.

Q: Will fuel duty changes affect UK petrol prices in 2025?

Fuel duty remains frozen at 52.95p per litre with a 5p cut extended until March 2026, stabilising prices.

Q: How can I save on fuel costs while driving in the UK?

Drive efficiently by avoiding rapid acceleration and planning routes, with hirefleet offering fuel-efficient vans like the small van hire to reduce consumption for business or personal moves.

Q: Are fuel prices in the UK expected to stay high in 2025?

Despite lower oil prices, global events and a stronger US dollar may keep prices volatile, but hirefleet supports van hire customers with flexible rentals to optimise travel during price fluctuations.

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