Unleaded and diesel prices continued to climb throughout November, with the average cost of a tank of diesel now around £2.80 higher than it was at the start of the month.

Across November, diesel rose by 4.7ppl, while unleaded increased by nearly 3ppl. This happened despite crude oil becoming slightly cheaper. Brent closed the month at $63/bbl, down from $64.30/bbl on 1st November.

So why were pump prices rising while crude was falling?

Drone attacks targeting Russia’s refining infrastructure sent global refining margins sharply higher, while attacks near the Black Sea port of Novorossiysk disrupted crude loadings. Reducing refining capacity reduces both the demand for crude oil and the supply of refined products.

According to data from Portland Pricing, wholesale diesel rose by $70/tonne by mid-November, with unleaded up $40/tonne. These higher wholesale costs squeezed retailers’ margins and ultimately forced pump prices higher.

There is some good news for motorists. Pricing pressures have started to ease, at least for now. On 30th November, the number of stations reducing prices on both unleaded and diesel outnumbered those increasing them. This is the first time this has happened in more than three weeks.

If this trend continues, we should see the pace of price rises slow, with the possibility of actual price reductions in the coming weeks. Retail margins are currently above the six-month average, suggesting there is room for pump prices to soften if wholesale costs continue to stabilise.

This will be a welcome relief after a month of steady increases.

Supermarket Price Trends

Asda currently leads on price for both unleaded and diesel, while Tesco shows the widest price variance. Morrisons is the most consistent across its network, with the lowest price variation. So, depending on where you live, the cheapest supermarket may vary.

Check Before You Fill

The PetrolPrices App is continuously updated with the latest local pump prices. Always check the app before you fill up to make sure you’re getting the best possible deal.

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Asda Express Moor Farm (Annitsford)
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