Experts are warning drivers that they could see fuel price fluctuations over the coming months as forecourts adjust to new environmental regulations.
The price of unleaded petrol jumped from 135.6p per litre at the start of December to 136.4p by the end of the month, with diesel rising from 141.6p to 142.7p.
This bucks the trend seen throughout most of 2024 where petrol and diesel prices fell for much of the year, much to the relief of drivers.
However, new environmental policies could see prices rise further in 2025 as major retailers and supermarkets see their wholesale costs jump slightly.
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Experts have warned that new fuel requirements could force prices up this year
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Steps have been taken by the UK Government to increase the amount of renewable fuel used in petrol and diesel, most notably with the rollout of E10 in 2021.
The default unleaded fuel found at the pumps around the country is now E10, with the old standard grade of fuel – E5 – now being reclassed as super unleaded.
E10 fuel contains up to 10 per cent bioethanol and could cut CO2 emissions by a further 750,000 tonnes per year, the equivalent of taking around 350,000 cars off the road.
A spokesperson for PetrolPrices said: “Starting January 1, 2025, the proportion of renewable fuel required in both unleaded (E10) and diesel (B7) will increase.
“Although the fuel itself won’t change, meeting these obligations will slightly raise wholesale prices to fuel retailers.
“This change is expected to add between 0.30ppl and 0.40ppl to the wholesale cost of both fuels, which could translate to higher pump prices.
“While this is a modest increase, it’s something drivers should be aware of as they fill up in the new year.”
Drivers are encouraged to shop at supermarkets for their fuel. Morrisons increased prices by just 0.5p per litre over the course of December, while Asda retains its crown of being the cheapest of the “Big Four”.
By the end of December, drivers heading to their nearest supermarket would see average prices of 134.2p per litre for unleaded petrol and 140.4p for diesel.
PetrolPrices predicts that costs will remain steady in January, with “local competition” set to play a key role in whether motorists will see these costs passed on to them.
As announced by Chancellor Rachel Reeves in the Autumn Budget, drivers will soon see the introduction of the Fuel Finder service which could save drivers between one and six pence per litre.
The price comparison tool will require retailers to publish live price data and inform the service within 30 minutes of any changes to the price or the supply.
LATEST DEVELOPMENTS:
E10 fuel was rolled out as the new standard grade of petrol in September 2021
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Depending on Parliamentary time, the Government hopes the Fuel Finder service will be live before the end of 2025 to help motorists save money in their local area.
