The cost of petrol and diesel is expected to rise (Image: Getty)
UK drivers may face rising in 2025 as new environmental policies come into effect, experts warn.
The adjustments, aimed at increasing the use of , are likely to raise wholesale costs for retailers, potentially translating to higher prices at the pump.
Fuel prices edged upward in December 2024, with unleaded petrol climbing from 135.6p per litre at the start of the month to 136.4p by month’s end.
prices followed suit, rising from 141.6p to 142.7p.
This marked a shift from the broader trend in 2024, during which prices fell for much of the year, providing welcome relief to drivers.
PetrolPrices predicts that January prices will remain steady (Image: Getty)
Starting January 1, 2025, the UK Government will require an increased proportion of renewable fuel in both unleaded petrol (E10) and diesel (B7).
While the composition of fuels won’t change, meeting the new standards will raise wholesale costs for retailers by an estimated 0.30p to 0.40p per litre, GB News reports.
For a large vehicle with a tank capacity of 60L, this could mean an additional £24 to fill up on fuel.
A spokesperson for PetrolPrices explained: “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 rollout of E10 fuel in 2021, containing up to 10% bioethanol, has already contributed to cutting CO2 emissions by 750,000 tonnes annually, the equivalent of removing 350,000 cars from the road.
These latest changes aim to build on that progress, but they come with the trade-off of higher fuel costs.
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Supermarkets continue to offer competitive fuel prices. Morrisons increased prices by just 0.5p per litre in December, while Asda maintained its reputation as the cheapest among the “Big Four” retailers.
By the end of December, drivers could find unleaded petrol at an average of 134.2p per litre and diesel at 140.4p per litre at supermarkets.
PetrolPrices predicts that January prices will remain steady, with local competition playing a significant role in whether retailers pass on increased costs to consumers.
To help drivers combat rising costs, the UK Government plans to introduce the Fuel Finder service, announced in the Autumn Budget by Chancellor Rachel Reeves.
The service will require retailers to publish live price data within 30 minutes of any changes, enabling drivers to compare prices and potentially save between one and six pence per litre.
Although the rollout depends on Parliamentary time, the Government aims to launch the Fuel Finder service before the end of 2025.