What can we Expect from Christmas Fuel Prices?
News entry dated 14th Dec 2016

We don’t like being the bearers of bad news here at PetrolPrices.com, but it now seems all but certain that we’ll see significant rises in the cost of petrol and diesel between now and Christmas. According to our figures, average prices have already begun to edge up.

As we discussed last week, the OPEC nations agreed back on 30th November to cap oil production. This was a successful attempt to drive up demand and, in turn, the price of oil.

To compound this, on Monday a number of other non-OPEC oil producing nations agreed to join in the production “freeze.” These countries include Mexico and Oman. Together they have reduced the supply of oil by over half a million barrels per day.

All of this had the desired effect; After the other countries joined the freeze, the price of a barrel of crude oil hit its highest level in 17 months.

Christmas Petrol

What can we expect from Christmas fuel prices?

Such a significant increase in the oil price will undoubtedly lift the costs of UK petrol and diesel, which have already suffered in recent months due to the weakness of Sterling. The question is how much will it climb by Christmas?

An increase of around three to five pence in the per-litre cost seems most likely to us, and this is in line with predictions being made by other parties. This sadly means averages of around the 120 pence per litre mark and an increase of a couple of Pounds on each fill-up – not what anyone really needs in the run-up to the festive season.

Light at the end of the tunnel?

For those wondering how long this will all last, there is a possibility that oil-producing nations are making hay while the sun shines. A lot could change following Donald Trump’s forthcoming presidential inauguration on January 20th 2017.

Trump is hardly known for his environmental credentials and is very much in favour of fossil fuels. A US fracking free-for-all could push the price of oil down, and force OPEC and other nations to give up their freezes in order to compete. As such, the silver lining in this particular cloud is that there’s at least a chance it may prove short-lived.

How to find the cheapest fuel

If you’re looking to find the cheapest fuel close to you or along a journey, you’ve come to the right place. Our free service and apps will help you locate the best value fuel wherever you are in the UK. We also always display averages on our website so you can get a sense of what price you should be expecting to pay.

In addition, it’s well worth keeping track of supermarket offers and loyalty card deals in the run up to Christmas. Supermarkets are often the cheapest place to find fuel as deals attract customers to the retail stores. We’d be very surprised not to see such enticements in the coming days and weeks.

Finally, don’t allow yourself to be a captive audience. Too much hurry to begin a long Christmas journey can leave you with no control over where you stop for fuel. A quick check on our service and a five-minute drive to a local supermarket or independent garage before you set off could save you a significant sum, with nearly 20 pence per litre separating the cheapest and most expensive per-litre prices of unleaded at the time of writing.

What do you think will happen to fuel prices in the coming year? Share your thoughts below.

IMAGE CREDIT: Geograph

Derek Turpin December 29, 2016

There is supposed to be a law against monopolies, but UK Fuel suppliers and Forecourts are infamous for ripping the motorist off, same as insurance companies! I use my car becuase I have a disability Petrol prices eat away my budget, Insurance companies are not allowed to take a disability into account UNLESS it affects your driving and is reportable to the DVLA mine is not I applied for insurance without stating my disability then aplied stating my disability £1200 difference! so its not just on the forecourt we in the UK are Ripped off its everywhere!!!

Wayne Pearson December 20, 2016

They must get more than 10p each time you press them handle on the pump.
Recently I filled up at s ainsburys and tryed something out my mate spoke about.
He be lived were all being fleeced before we put fuel in car.
Well I tryed his suggestion by holding the nozzle just touching the top edge of the tank lip.
And I slowly pressed the trigger.
Thing was I got the pump to register 35p before a single drop of fuel hit my tank.
I was told that they are maintained regularly and serviced regularly.
So I tryed Morrison's and it was almost the same I managed to put 27p before fuel came through the trigger.
All claim there pumps are maintained regularly and not fixed in anyway.

I just wondered is there something amiss that people arnt seeing as we all just whack the handle into fuel tank and think nothing of it, as that way we don't see a thing we just trust the pumps without realizing how they fiddle us all.

I'd like to see if anyone has tryed this before and got same results as I have.

Anyway happy Christmas everyone hope you all have a wonder full 2017.

Robert Jones December 20, 2016

Andrew what a unnecessary comment... grow up man

H M December 16, 2016

'For those wondering how long this will all last, there is a possibility that oil-producing nations are making hay while the sun shines. A lot could change following Donald Trump’s forthcoming presidential inauguration on January 20th 2017.'

Even if things do change and the price of oil falls you can be sure the price at the pumps will continue increasing. I think the only excuse the retailers haven't used is that, 'Vehicles run on petrol and diesel so we have to increase the price.'

Michael Farmer December 15, 2016

No. of course it won`t go up. The recent Government enquiry found that it takes around 7 weeks for any rise OR FALL to affect the prices at the pumps. Start counting. When oil was $100 a barrel we were paying 1.37 for Super. I`m paying 1.28 NOW !!! FARCE

    Tim Hutchings December 17, 2016

    It's 111.7 at Tesco Llanelli. Sounds like you're being done!

colin shirley December 15, 2016

I look forward to alternative fuels but can not imagine what duty the government will impose,I doubt we the motorists will be any better off.Vat and fuel duty on one product is a rip off,fuel duty should be adjusted to stabilize the fuel price.

Tim Hutchings December 15, 2016

It won't last! OPEC countries are notorious for agreeing one thing, then going off on their own and reducing prices to sell more oil a little later. Some need to sell more oil to shore up their weak economies!
Apart from that, fracking in the US becomes economic at between $50-$55 per barrel, so around that price and the US will turn on the taps, and they can keep pumping for the next 10 years.
The only likely hood of fuel prices going up is a change in the £/$ exchange rate or the government putting up tax which they haven't done for a few years. It would be too politically sensitive for the moment!

Robert Rears December 15, 2016

The only agency that will make serious money out of rising oil prices is the British Government as tax on fuel far exceeds any profit made by the oil companies or the oil producers. This must be music to the ears of the likes of David Davis, Liam Fox & Theresa May, currently facing a huge hole in tax revenues following the decision to cut corporation tax in response to Brexit.
YET ANOTHER TAX HIKE THAT WILL COST MOTORISTS MILLIONS IN FUEL DUTY TO PAY FOR BREXIT, and its working as public blame oil companies and or producers instead of the real culprits.

    Brian Rolllinson December 15, 2016

    Sounds like you are beating the drum for a vested interest!

Patricia LLOYD December 15, 2016

If we all continue to shop for cheaper fuel and not use the rip off pumps
Maybe the will start be be a bit more competitive again

Thank you petrolprices.com
I dont go to fill up without checking your site first

Merry Christmas to you all

Anthony Solan December 15, 2016

Wait, last week you were talking of £1 a litre, now we're looking at £1.20?
The USA is worried about fuel hitting $3 a gallon and here we are facing the equivalent of $5.67 or £4.54 for a US gallon of fuel.
Trumps policies may affect the cost of fuel in the US, but we're kidding ourselves if we think we'll benefit here!

Brian Rolllinson December 15, 2016

Can't wait to see which retailers of diesel & petrol try to milk the public the most!

Trevor Lloyd December 15, 2016

"Such a significant increase in the oil price"

Crude is still below $55 a barrel...

Thieves...

    Brian Rolllinson December 15, 2016

    Trevor, just love the subtlety of your comment. No innuendo there!