Everything you need to know about saving money on fuel in the UK
Petrol and diesel prices in the UK are not set by a single authority — they fluctuate daily based on global crude oil markets, the pound-to-dollar exchange rate, retailer margins, and local competition. This means the price at a Shell forecourt in London can be more than 10p per litre higher than an independent station just two miles away.
Supermarket fuel stations — including Tesco, Asda, Sainsbury's, and Morrisons — consistently rank among the cheapest in the UK because they use fuel as a loss leader to drive footfall. However, they are not always the cheapest option once you factor in the distance you need to travel to reach them.
For every litre of unleaded petrol you buy in the UK, roughly 53p goes to the government in the form of fuel duty (52.95p/litre as of 2024), plus 20% VAT on top of the total pump price. The remaining amount covers the wholesale cost of the fuel itself and the retailer's margin, which typically sits between 5p and 12p per litre.
This means that even during periods of falling global oil prices, UK drivers may not see an immediate reduction at the pump — retailers can be slow to pass on wholesale savings. Monitoring local station prices regularly is the most reliable way to ensure you are always refuelling at the best rate.
E10 Unleaded (Regular Petrol) is the standard grade sold at virtually all UK forecourts and suits most petrol cars manufactured after 2011. It contains up to 10% ethanol, which slightly reduces fuel economy compared to older E5 formulations.
Super Unleaded (97–99 RON) is a premium petrol grade that can offer marginal performance improvements in high-performance engines but typically costs 10–15p more per litre. For most everyday drivers it offers no measurable benefit.
Diesel (B7) offers better fuel economy than petrol for high-mileage motorway drivers, though it generally costs slightly more per litre. Modern diesel cars with DPF filters require regular longer journeys to function correctly.
Premium Diesel contains cleaning additives claimed to improve injector health and efficiency. It is typically 8–12p per litre more expensive and is recommended only for older high-mileage diesel engines as a periodic treatment.