This month marks the start of some of Labour’s new tax and environmental regulations coming into effect, both of which could come to a head targeting petrol and diesel car owners. As a result of some of the new environmental rules, motorists should be aware that their usual petrol prices will be changing over the next few months.
This is because the government is pushing harder behind initiatives originally launched in 2021 which required a certain amount of fuel in petrol and diesel to be renewable. A spokesperson for PetrolPrices explained the percentage of renewable fuel required in formulas is going up and this will affect both unleaded, E10, and diesel, B7, fuels starting this month.
This shift could add between 0.3p and 0.4p per litre to the wholesale cost of both fuels. The experts told GB News: “Although the fuel itself won’t change, meeting these obligations will slightly raise wholesale prices to fuel retailers.
“This modest increase is expected to slightly raise pump prices, but it’s something drivers should be mindful of as they fill up in the new year.” The jump will translate through to customers who could see varying increases at the pump depending on what stations they go to.
PetrolPrices predicts that the strong competition between major stations could keep costs relatively steady for this month at least as the companies are well aware that price plays a major factor in whether motorists pass them by in favour of their competitors.
These increases come amid a myriad of higher costs for motorists this year including VED price rises and even EV owners could be facing tax dues for the first time. To help motorists combat these higher costs and drive more affordable competition, the Fuel Finder service is set to be introduced before the end of this year, as announced by Chancellor Rachel Reeves in her Autumn Budget.
This price comparison tool will require retailers to publish live price data, updating within 30 minutes of any changes to price or supply, in order to help drivers ensure they’re getting the most from every penny spent at the pump. Giving drivers the power to compare live prices could potentially save between 1p and 6p per litre. However the rollout timing does largely depend on Parliamentary time.