Analysis from UK breakdown provider RAC reported a huge increase in the price of fuel for August, the largest monthly rise for 23 years. Latest figures reveal that the average cost of petrol went up by almost 7 pence per litre in August 2023, while diesel prices went up 8 pence per litre - roughly £4 per tank. The increase in the cost of petrol and diesel has been attributed to the rising cost of oil with prices up $12 per barrel since July 2023.
The latest fuel price rises will come as a further blow to UK motorists after UK supermarkets were accused of profiteering last month, selling fuel at 'rip-off' prices at a time when many UK households were struggling with the cost of living crisis. An investigation commissioned by the Competition and Markets Authority concluded that UK drivers paid almost £1bn too much in fuel costs in 2022. The report concluded that fuel retailers had charged an additional 6p per litre between 2019 and 2022, meaning drivers were overcharged between £2.70 and £3.90 for a tank of fuel, every time they filled up.
However, the average price of diesel is currently £1.54 per litre, still a long way short of the 2022 peak where the average price of diesel reached £1.96 per litre. With the potential for further fuel price hikes to come, we've provided a list of ways to help you cut your fuel costs. For further money-saving tips, read our article, 'How to save money on fuel'.
Ways to save on fuel costs
Drive as efficiently as possible
Adjusting the way you drive could help save you a significant amount of money on fuel. Accelerating and braking more gradually can help your car consume considerably less fuel and it can be more fuel-efficient to use higher gears where possible. Additionally, try to stick to around 70mph on the motorway as this can save as much as 25% on your fuel.
Make your car more fuel-efficient
There are a number of ways in which you can optimise the fuel efficiency of your vehicle. Reducing drag and removing unnecessary bike or roof racks can reduce fuel consumption by as much as 20% and making sure your tyres are correctly inflated could improve your fuel consumption by an additional 2%. Another tip is to only use air-con when absolutely necessary as it will generally require more engine power to run.
Make use of offers and rewards
Many supermarkets offer rewards for shopping in-store meaning you can often save up to 5p per litre when you fill up. If you regularly fill up at a local petrol station, check if it has a loyalty scheme as you may qualify for cashback or vouchers. Also, some credit cards offer rewards, particularly at petrol stations which can be useful for those making regular car journeys. Check out our article 'Best credit cards for cashback and rewards' for more information.
Compare local petrol prices
With the cost of fuel on the rise once again, you may wish to search for the best place to buy petrol in your local area. An easy way to compare local petrol prices is by using the website PetrolPrices.com. It also has an app that provides comprehensive information on the cost of both petrol and diesel at a range of filling stations in any location. When we last checked, the local fuel prices varied as much as 5%, meaning you could save around around £5 on a tank of petrol.
Check out our handy table below that tells you how far it is worth driving to save money on fuel.
(Click to enlarge)
