Fuel prices are starting to fall, but it might not be for long
November 06, 2025 by Jamie Edkins
Car changing is a big deal
Data from RAC Fuel Watch shows that prices of petrol and diesel fell slightly in October, but rumours of a fuel duty hike in the autumn budget could increase costs for drivers.
Fuel prices have dropped slightly in October according to RAC Fuel Watch, following the increase we saw in September. It’s not a huge drop though, saving drivers around 30p on a 55-litre fill up.
And the looming Autumn budget may also see the cost of fuel shoot back up, because Chancellor Rachel Reeves may be revising the five pence-per-litre discount which has been in place since 2022.
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Fuel prices drop in October, but not by much
In October, the average price of a litre of petrol dropped by 0.58p – going from 135.55p to 134.97p. That means the cost of filling a 55-litre car is now £74.23, around 30p cheaper than in September.
Average prices of diesel fell even more, with a drop of 0.81p bringing the cost of a litre down to 142.57p. Filling your car up with 55 litres of diesel will cost you £78.41 on average, a saving of around 40p compared to September.
Filling up at one of the big four supermarkets – Sainsbury’s, Morrisons, Tesco or Asda – will save you 3p per litre on average compared to other forecourts, and Sainsbury’s is selling some of the cheapest petrol in the UK right now. One store in Ipswich is charging just 124.9p per litre. For the cheapest diesel, Morrisons in Bishop Auckland is selling it for 134.7p per litre.
RAC head of policy Simon Williams also advised drivers to check out independent forecourts which can offer great value fuel. You can also check the latest fuel prices near you using our handy tool.
Prices at the pumps could rise in the autumn budget
While it’s great to see fuel prices start to drop, this relief could be short lived. Chancellor Rachel Reeves is delivering the autumn budget at the end of November, and there are rumours that the 5p per litre fuel duty cut could be revised.
Fuel duty has been frozen at 57.95p per litre since 2011, and there’s been a 5p per litre discount applied on top of this since 2022. This was introduced to help with the increased cost of living following the COVID-19 pandemic.
The chancellor extended this discount for one year in the 2024 autumn budget, but drivers might not be so lucky this year. You could see the discount scrapped entirely, increasing fuel prices by 5p per litre, or the government could take a softer approach and raise the price by 1-2p.
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Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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