Prices at the pump dropped by 2 pence per litre on average last month, according to the RAC’s latest ‘fuel watch’ analysis.
The firm says unleaded came down by 1.8p in December, making a litre 135.37p on average, with diesel dropping 2.3p, to 144.27p.
Figures sourced by the company indicate last year’s average price for petrol stood at 135.69ppl and diesel 142.96p, representing respective reductions of 6.5p and 5.7p per litre compared to 2024’s retail prices.
Supermarket averages for petrol and diesel were 132.65ppl and 141.24ppl in 2025, with drivers choosing these outlets saving a respective average of £1.49 and £1.67 a tank.
Turning its eye to the international oil market, the breakdown and insurance company has again compared wholesale oil with retail fuel prices, and says the “slight downward shift” in December’s pump prices “haven’t followed the rate of fall” seen in the cost of a barrel of oil, which stood at $61.69 (£45.62) last month.
The firm’s head of policy, Simon Williams says consumers “are starting the new year paying 1.5p less than they were a year ago”, but adds: “it’s a shame drivers aren’t seeing even lower prices on forecourts up and down the UK”.
