UK Fuel Finder

How fuel prices work in the UK

Every litre of petrol or diesel sold in the UK includes two layers of government tax. Fuel duty is a flat rate of 52.95p per litre, set by HM Treasury and unchanged since a 5p cut in March 2022. VAT at 20% is then charged on the entire pump price, including the duty itself — meaning drivers effectively pay tax on tax. Together, duty and VAT account for roughly 55–60% of what you pay at the pump. The remaining amount covers wholesale fuel costs, refining, distribution, and the retailer's margin, which typically ranges from 3–12p per litre.

Why prices vary by region

Fuel prices can differ significantly even between towns a few miles apart. Stations near fuel storage terminals or refineries benefit from lower distribution costs, while remote and rural forecourts pay more to have fuel delivered. Competition also plays a major role — areas with multiple supermarkets tend to see lower prices, as retailers undercut each other to attract customers. In contrast, rural locations with limited competition may see higher margins. Motorway services, with their high rents and captive audiences, often charge a premium of 10–20p per litre above the cheapest local options.

How to save on fuel

• Use fuel comparison apps such as PetrolPrices or the government's Fuel Finder to locate the cheapest stations near you — prices can vary by 10–15p per litre within a small area.
• Fill up at supermarkets where possible, as they typically operate on thinner margins and use fuel as a loss-leader to attract shoppers.
• Fill your tank when prices drop rather than topping up small amounts, as each visit to the pump carries fixed time costs and you benefit from buying at lower per-litre rates.
• Consider whether premium fuel is necessary for your vehicle — most modern cars run perfectly well on standard E10 petrol, saving you 10–15p per litre over premium grades.