British motorists are facing a costly bank holiday weekend after petrol prices climbed to their highest level since November 2022, just as millions of drivers prepare to take to the roads.
The average price of petrol has risen to 161.6p a litre, while diesel now costs an average of 183.4p, according to the AA.
The increase comes at a particularly difficult time for motorists, with the RAC forecasting exceptionally heavy traffic across the UK's motorways and major roads during the bank holiday period.
Friday is expected to be the busiest day, with more than 4.1 million cars predicted to make journeys — potentially making it the worst day for congestion since the RAC began keeping records in 2015.
For families planning long-distance journeys, the combination of higher fuel costs and heavily congested roads threatens to make the traditional bank holiday getaway significantly more expensive and time-consuming.
Petrol prices back at 2022 levels
The latest increase takes petrol prices back to levels last seen in November 2022, when the energy market was still being heavily affected by the fallout from Russia's invasion of Ukraine.
The renewed rise has been driven by higher wholesale oil prices, adding pressure to household budgets at a time when many consumers are already facing elevated living costs.
Luke Bosdet of the AA said the latest figures demonstrated that motorists were once again facing an unfair fuel market.
“UK pump pricing is back to its worst,” Bosdet said, arguing that prices were “too often overpriced and uncompetitive, with too many communities denied road fuel at a reasonable price”.
His comments come amid increased scrutiny of petrol retailers by Britain's competition regulator, which has pledged to intensify monitoring of fuel prices amid concerns about excessive margins.
Oil prices remain volatile
The latest pressure at the pumps has coincided with significant volatility in international oil markets.
Before the US-Israeli attack on Iran in February, Brent crude — the international benchmark for oil — was trading at approximately $72 a barrel.
The price subsequently surged to $126 a barrel in April before falling to around $71 at the beginning of July as hopes grew for a peace agreement.
Brent has since climbed again and is currently trading at about $89.63 a barrel.
Changes in wholesale oil prices typically feed through to petrol and diesel prices with a delay, meaning motorists can continue to feel the effects of movements in global energy markets even after crude prices have begun to fall.
Competition watchdog targets retailers
The Competition and Markets Authority has been closely monitoring the fuel sector following concerns that some retailers have been slow to reduce pump prices when wholesale costs decline.
The regulator found this summer that a number of petrol stations had been too slow to pass on reductions in wholesale energy costs to motorists.
It has also warned retailers that it will continue monitoring prices and has taken steps to improve transparency for consumers.
A government-backed service known as Fuel Finder allows drivers to compare prices at petrol stations across the UK, potentially helping motorists find cheaper fuel before setting off on long journeys.
The AA said there were already significant variations between forecourts in different areas.
On Thursday night, some stations in locations including Aylesbury, Wembley and Gloucester were selling petrol at roughly 10p a litre below the national average.
Bosdet said motorists could use those differences to their advantage.
“One competitively priced forecourt can often pull down the price of fuel locally, including at nearby supermarkets,” he said.
“Drivers just need to find them and go to them.”
Fuel Finder faces compliance problems
However, the effectiveness of the government's price comparison system depends on retailers providing accurate and timely information.
Earlier this month, the CMA said it had sent more than 1,000 warning letters to fuel retailers that had failed to submit their prices to the Fuel Finder service.
The regulator's intervention reflects wider concerns about transparency in the fuel market, particularly when motorists are facing significant differences in prices between neighbouring forecourts.
With millions of journeys expected over the bank holiday weekend, motorists are being urged to compare prices before filling up and, where possible, choose cheaper forecourts along their routes.
But with petrol now at 161.6p a litre and diesel at 183.4p, drivers face a stark reminder that the cost of getting behind the wheel remains closely tied to volatile global energy markets.
For millions heading away over the holiday, the message is clear: the cheapest fuel may require a little more planning — and potentially a detour — before the journey begins.