Diesel costs have gone down once more though they continue to be dearer than petrol costs on the pumps.
The price of working a diesel automobile has dropped to about 15p per mile (Picture: Getty)
Diesel drivers are dealing with 15p-per-mile costs in February. Based on the newest RAC figures for diesel, the common worth per litre is at present 140.97p for diesel at forecourts throughout the UK.
By the beginning of February, the value of diesel had dropped by 3p prior to now month and 5.5p because the starting of December, although it stays increased than it was again in 2021.
Based on motoring and insurance coverage web site Nimblefins, the common gasoline financial system of UK diesel vehicles is 43mpg (although this may be decrease for city-only driving), which implies that, primarily based on the present worth per litre, it at present prices 15p per mile to run a diesel automobile, not together with some other prices equivalent to upkeep.
On the similar time, petrol prices have dropped too, right down to 131.9p for the common litre of unleaded, having fallen by 3p in January as properly. Given the common gasoline financial system of petrol vehicles, it means the price of working a petroleum automobile is 16p per mile, so diesel stays the cheaper possibility as soon as gasoline financial system is taken into consideration.
RAC head of coverage Simon Williams stated: “Seeing the value of petrol dip underneath 132p is a real increase for drivers, rewinding costs to these we final noticed 4 and half years in the past. And with even cheaper costs out there relying on the place drivers replenish, it is a optimistic begin to the 12 months for family budgets, particularly so quickly after Christmas.
“The Competitors and Markets Authority’s 2025 annual highway gasoline monitoring report revealed in December stated competitors within the sector had not strengthened and retailer margins remained at traditionally excessive ranges, and in some instances had elevated. It additionally confirmed, opposite to what the gasoline retailers commerce affiliation had been arguing, that elevated working prices weren’t the rationale for common margins on petrol and diesel being increased.
“Our evaluation of RAC Gasoline Watch knowledge additionally exhibits an analogous image of retailer margins. So, had retailers handed on extra of the financial savings they’ve benefitted from when shopping for new gasoline provide on the wholesale market, the January worth reductions would most likely have been greater.”
In latest months, the federal government additionally introduced a brand new pay-per-mile tax, particularly for electrical vehicles.
Chancellor Rachel Reeves unveiled the coverage to introduce a 3p-per-mile tax for EVs which is ready to take impact from 2028.
When coupled with the common price of charging an EV at residence, this is able to convey the price of working an electrical automobile to between 5p and 11p per mile.
The scheme is ready to be carried out in 2028 following a session, and would price EV drivers a mean of £250 per 12 months.
Motoring teams expressed issues that such a tax might put some folks off from switching to electrical vehicles.
The Treasury faces a discount in income from gasoline responsibility as extra drivers transfer from petrol or diesel vehicles to EVs.
Successive governments have discovered the prospect of introducing per-mile costs for driving – generally known as highway pricing – too politically poisonous.
Ms Reeves’s EV scheme will contain customers estimating how far they are going to drive over the next 12 months, and making an additional fee on prime of car excise responsibility (VED).
In the event that they drive extra they might want to prime up this quantity, whereas among the cash would carry over to the following 12 months if somebody clocks up fewer miles.
Journey examples at 3p per mile embody £12 from London to Edinburgh, £5 between Cambridge and Bristol, and £2 between Liverpool and Leeds.
EVs’ exemption from highway tax, formally referred to as VED, was eliminated in April 2025.
A Authorities spokesperson stated: “Gasoline responsibility covers petrol and diesel, however there’s no equal for electrical automobiles.
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“We would like a fairer system for all drivers while backing the transition to electrical automobiles, which is why we now have invested £4 billion in help, together with grants to chop upfront prices by as much as £3,750 per eligible automobile.
“Simply as it’s proper to hunt a tax system that pretty funds roads, infrastructure and public companies, we’ll have a look at additional help measures to make proudly owning electrical automobiles extra handy and extra inexpensive.”
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