UK petrol prices have created a 10p-a-litre gap between forecourts within 10 miles as average costs stay over 160p, according to This is Money. An exclusive investigation revealed a pump-price lottery where sleepy villages can be 10p a litre or £5.50 a tank cheaper than nearby towns or cities.
Wholesale petrol costs heading to UK forecourts plunged 10p a litre at the end of July due to on-off negotiations between Iran, Gulf states and the US to end hostilities. Analysis by the AA shows wholesale costs have now gone back up again, but some retailers have already moved on price, creating a yawning gap between rivals just a few miles apart.
Motorway service areas were among the first to move, dropping petrol prices from a summer high of 185.9p a litre to below 180p last weekend.
Outside of expensive motorway filling stations, the AA said several areas experience wild price swings across short distances. Five of the largest examples are in Cambridge, Northamptonshire, London, East Manchester and South Manchester.
Regional price gaps
In central Cambridge, petrol costs between 164.9p and 167.9p a litre. Driving seven miles south to Little Abington takes 16 minutes, where petrol prices drop to between 154.9p and 156.9p a litre.
In Northamptonshire, a six-mile, 15-minute drive between Hannington and Wellingborough shows a price difference of nearly 10p a litre. Petrol in Hannington costs around 153.7p a litre, whereas prices reach up to 165.9p near the Park Farm Industrial Estate toward Wellingborough.
In Wembley, London, drivers within three miles can face significant price differences. Fuel costs 154.9p a litre at Sainsbury's compared to 165.9p a litre at Esso.
In East Manchester, drivers can save 8p a litre across four miles between Stalybridge and Hattersley. Petrol at Texaco in Stalybridge costs around 151.9p a litre, compared to 159.9p at BP near Mottram in Longendale in Hattersley.
In South Manchester, filling stations in Ashton-under-Lyne are up to 10p a litre cheaper than forecourts ten miles away in Cheadle. Petrol in Ashton can cost as little as 152.9p a litre, whereas prices in Cheadle reach 164.9p. While traveling far out of the way for fuel is not recommended, stopping when seeing a good deal is worthwhile.
AA driver advice
Edmund King, president of the AA, warned drivers against assuming all fuel costs are uniform. "Drivers shouldn’t take fuel prices for granted and just assume that all prices are high," King said.
"The driver of a family hatchback can save £5.50 between filing up in the cheapest garage just a couple of miles from the most expensive," King said. He added that checking the AA App or Fuel Finder before venturing out makes sense if a cheaper filling station is on the way to work or the supermarket.
King explained that a £5.50 saving makes driving roughly 10 miles out of the way economically worthwhile, depending on running costs. "But if the petrol station is already on your route, the relevant distance is only the additional detour," King said, noting a garage 20 miles away could still be rational if it adds only two miles to an existing journey.
King also highlighted the financial value of a driver's time, calculated at £15 an hour. "But there is a second economic cost which is the driver's time. If we value someone's time at £15/hour and the cheaper garage requires a 20-minute additional round trip then this costs £5 of time, leaving only 50 pence of the £5.50 saving before we've even considered the vehicle cost," King said. He advised drivers to only travel up to five miles out of their way to fill up after checking for cheaper options on their route.
RAC market analysis
The RAC attributed local price variations to retail dynamics, where prices are driven by competing local supermarkets or independent forecourts determined to offer cheap fuel. If local fuel-selling supermarkets do not compete strongly on price, drivers end up paying more.
Simon Williams, head of policy at the RAC, stated petrol prices appear to have reached an Iran War peak after rising 11p over 33 consecutive days. "The price of petrol appears to have finally reached an Iran War peak, having risen 11p over 33 consecutive days," Williams said. "A litre of unleaded hit a high of 161.66p at the weekend and has now reduced very slightly to an average of 161.29p."
Williams noted diesel prices rocketed 17p since July 9 but have also halted their increase. "Diesel, which has rocketed 17p since 9 July, has also stopped going up for now, having reached 182p (181.84p). Fortunately, this is still almost 10p below its conflict high of 191.54p," Williams said.
While prices should decrease slightly in coming days, Williams cautioned the drop may be short-lived as oil prices rose almost £7.41 ($10) in the past week toward £66.73 ($90) a barrel. "The current situation shows just how volatile fuel prices are and how drivers in the UK are at the mercy of global events," Williams said.
