Petrol and diesel prices rising while electricity costs fall

Petrol and diesel car drivers are experiencing rising fuel prices, while EV drivers are seeing their costs fall.

The UK’s latest inflation figures published by the Office of National Statistics (ONS) on October 18th revealed that the rate of inflation for September remained at 6.7%, the same as in August. Behind the number, analysis revealed that while food prices saw their first monthly fall in two years, fuel prices rose sharply.

The average price of diesel rocketed by more than 8p a litre in September and petrol by 4.5p on the back of global oil production cuts, which drove the cost of a barrel of oil close to $100, according to data from RAC Fuel Watch. 

The increases mean it now costs nearly £90 to fill up a 55-litre family diesel car – around £4 more in a month, and the highest cost since April – and more than £86 for a similar petrol car, an increase of over £2 in September and the highest cost since December 2022.

Conversely, energy prices, including electricity, fell from October 1st as regulator Ofgem cut its price cap again to reflect a further fall in wholesale power and gas prices. The cut of about 7% was forecast to save households an average of £151 compared with the previous quarter, according to the regulator. For EV drivers, charging their cars through a home charger, savings could be greater subject to their EV mileage. It is also worth noting that people with a home charger and using an overnight electricity tariff, can make significant savings on daytime charging rates.

Looking ahead, the rise in the production costs of oil, which were behind September’s diesel and petrol price rises are now being replaced by concerns centred upon the ongoing position in the Middle East. The net result is that oil prices are very volatile and as such further price rises are possible. 

Debbie McKay, Commercial Director of Motor Sales