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Petrol Drops to 2021 Low Across UK as Diesel Slides Too

Falling crude prices drove the drop, with regulators warning retailers kept margins high.

Overview

  • RAC data show average petrol at 131.91p per litre and diesel at 140.97p, putting petrol at its lowest level since July 2021.
  • Petrol has fallen by more than 5p per litre since early December, saving nearly £3 on a typical 55‑litre fill, while diesel is down about 3p since early January.
  • Cheaper deals are available at some forecourts, with supermarket sites such as Asda advertising prices well below the national average and local listings in London and Shropshire undercutting 132p.
  • The declines follow oil briefly dropping below $60 a barrel on January 7, though the RAC says retailers have not fully passed through wholesale savings.
  • The CMA’s latest monitoring found weak competition and elevated margins, the government is developing a Fuel Finder price-transparency tool that could save 1–6p per litre, and analysts caution that rising USIran tensions have pushed Brent higher, posing upside risk.