- The average price of diesel in the UK, 155 pence a liter, is the most expensive in all of Europe
- This is despite the 5p fuel tax cut introduced by the Government in March 2022.
- RAC blames retailers for doubling margins – see how petrol prices compare
If you drive a diesel car or van, you are paying more to refuel than any other country in Europe.
The UK now has the most expensive diesel, despite the current 5p per liter fuel tax rebate introduced in March 2022 and extended for a further 12 months in the Spring Budget.
The RAC, which compared our fuel prices to those of our European neighbours, called it a “very dubious honour”, blaming retailers for pocketing exaggerated margins on every liter of diesel.
Below we reveal how the UK ranks in terms of petrol price against other European nations.
British drivers with diesel-powered cars and vans are paying more to fill up than any other country in Europe, despite a 5p per liter fuel tax cut. The RAC blames retailers for more than doubling diesel margins to 18p, compared to the long-term pre-pandemic average of just 8p.
The average price of diesel at the pump in the UK is currently 155p per litre.
This makes it 5p more expensive than the next most expensive countries (Ireland and Belgium at 150p) according to the latest available European data and 21p more expensive than the European average.
The RAC data excludes Norway and Switzerland due to difficulties in obtaining the information.
Even with petrol and diesel duty reduced from 57.95p to 52.95p from spring 2022 – a measure introduced by then chancellor Rishi Sunak to ease the burden of rapidly rising fuel prices following the Russian invasion of Ukraine), the United Kingdom still has the highest rate. of the diesel tax in Europe together with Italy.
However, the average price of a liter of diesel in Italy – where VAT on fuel is 22 per cent – is currently 7p lower than in the UK, with an average of 148p.
Diesel drivers in France – which charges the same 20 per cent VAT on fuel as Britain, although the tax rate is around a penny lower than the UK (52p) – pay around 9p less (146p) than UK motorists.
In Belgium, where the tax is 2p less than in the UK (51p) and VAT is slightly higher (21 per cent), its diesel is 5p cheaper (150p).
RAC analysis reveals that diesel drivers are suffering at the pump much worse than their petrol-using counterparts.
Comparing our average unleaded price of 149p per liter to the rest of Europe, the UK is 11th on the list of most expensive countries to fill up.
Surprisingly, Denmark has the most expensive petrol of all, at a whopping 175p on average, although fuel tax in Denmark is much higher than in the UK, at the equivalent of 59p, with VAT at 25%. hundred.
RAC fuel spokesman Simon Williams said the pain Britain is suffering from drivers of diesel-powered vehicles is largely due to Retailer margins: the difference between the delivered wholesale price and the retail price before VAT.
It is estimated that, on average, retailers pocket around 18p for every liter of diesel sold.
That’s a surprising 10p higher than the long-term average of 8p seen before the pandemic.
“Despite the RAC bringing the matter to the attention of Energy Secretary Claire Coutinho in a letter just over a week ago, the price of diesel at the pump has barely fallen, despite wholesale prices of petrol and diesel are identical, just 111 pence a liter per year,” Wiliams said.
‘The average price of a liter of diesel should drop to around 145p if retailers charged fairer prices.
‘In our opinion, the margin on gasoline is also excessively high: 13 cents.
“We see no good reason why retailers in Britain are not cutting their prices at the pump.”
Despite the dire news for diesel drivers, there is reason to be hopeful for the future.
The Digital Consumers, Competition and Markets Act became law on Friday, giving new powers to the Competition and Markets Authority to closely monitor road fuel prices and report any signs of malpractice to the Government.