High Cost of Uk Gasoline Prices Fuels Debate

By Shubhendra Anand , 30 April, 2025

In the past few weeks, the fuel price in the UK has dropped a bit, but it is still expensive for drivers. From 143.15p per liter, unleaded gasoline primarily sells for 136.15p as of last week, while diesel has remained around 141p per Liter. However, such prices are still much higher than previous market price hikes.

The substantial levies the British government imposes are primarily responsible for fuel prices. In addition to the 20 percent Value Added Tax, the current fuel duty rate is 52.95p per Liter. This significant tax component guarantees that prices stay high despite fluctuations in the price of crude oil on global markets. Additionally, the exchange rate of the pound sterling vis-a-vis the US dollar also has a bearing on the price of gasoline. Since the oil is sold on the world market in dollars, if the pound falls, the price of fuels is likely to rise. At the same time, global oil consumption and the productive potential of the oil refining sector are the primary determinants of price volatility.

One of the officials stated that Since July, fuel costs have started to decline; however, drivers are still being charged above what is reasonable due to high fuel margins, which are not declining. Many other problems in the country lead to fuel-based issues in the United Kingdom. Decentralized issues like price differences should also be considered, as higher prices usually exist in the countryside due to the high delivery costs and low competition. With the UK government increasingly feeling the heat to bring down fuel prices, motorists can only wish that the ongoing months will see further price cutbacks, which would be a blessing to already burdened household budgets.

                    The report shows the UK fuel price graph for 2024 :