After a month of gradual increases, drivers are wondering if December will bring stability to fuel prices. In November, both unleaded and diesel prices rose, but the rate of increase was slow during the period.
November Recap: Prices on the Rise
Unleaded petrol started November at an average of 134.74 pence per litre (ppl) and ended the month at 135.66ppl—a modest increase of just under 1ppl. Diesel followed a similar trend, beginning at 139.65ppl and climbing to 141.61ppl by the end of the month.
Brent crude oil, the key ingredient in refining unleaded and diesel, fluctuated between $71 and $76 per barrel throughout November. It hit a low of $71.05 mid-month before rising sharply to $75.17 on 22nd November, then settling back to just under $72 to close the month.
Currency fluctuations also played a role, as the US dollar (USD) strengthened against the British pound (GBP), moving from $1.29 to $1.26. A weaker pound typically raises fuel prices when oil is priced in USD, though the declining cost of crude oil partly offset this effect.
What’s Ahead for December?
With crude oil prices dropping again and the GBP recovering slightly since late November, there’s little reason to expect wholesale costs to drive further pump price increases in the short term. Wholesale markets have been stable, and any changes at the pump will likely depend on local competition and retailer strategies as the year ends.
The Competition and Markets Authority (CMA) recently highlighted that retailer margins remain higher than historic levels. This indicates that while wholesale prices are stable, some pump prices may not fully reflect these trends, further underlining the importance of shopping around for the best deal.
What Can Drivers Do?
For now, fuel prices are expected to remain relatively flat, with a chance of small decreases in some areas. Drivers can take proactive steps to save:
Compare Prices
Use tools like the PetrolPrices app to find the cheapest fuel near you.
Report and Review
Confirm prices and leave reviews on the app to help other drivers and encourage competition.
Plan Your Fill-Ups
Keep an eye on local stations and supermarket promotions, as these can make a noticeable difference.
By staying informed and engaged, drivers can collectively help drive competition and reduce fuel costs for everyone. Every small action, like reporting prices or sharing insights, makes a big difference.