Feature · Fuel prices

From 17p to £2: how Britain's fuel prices got here

Oil shocks, tax changes, blockades, a pandemic and two wars have pushed the price at the pump up and down for nearly 50 years. We went back through the official figures to see what moved it most, and what could move it next.

By TankTicker · November 2026 · Prices are UK averages in pence per litre, not adjusted for inflation

In 1977 a litre of four-star petrol cost an average of 17.6p, according to government figures. In the week of 12 October 2026, the average litre of diesel cost 200.04p, the highest in the official weekly series and the first time it has passed £2. In between came steady climbs, sudden cliffs and the odd week when the whole country seemed to be queuing for fuel.

Five decades in one line

UK average pump prices, pence per litre, January 1989 to November 2026

Unleaded petrolDiesel

July 2000: unleaded around 85p, weeks before the September fuel protests
July 2008: diesel near 133p as crude oil costs surge
December 2008: prices crash as the financial crisis bites
April 2012: a then-record of 142p for petrol and 148p for diesel
Early 2016: petrol close to 101p after oil prices slump
May 2020: lockdown sends petrol to around 105p
July 2022: records of 191.6p (petrol) and 199.2p (diesel)
Mid-2023: prices fall back to around 143p
October 2026: diesel passes 200p during the conflict involving Iran

Source: DESNZ, Typical retail prices of petroleum products (table 4.1.1), mid-month prices for 1989 to May 2003; DESNZ Weekly road fuel prices, averaged by month, from June 2003. November 2026 is one week only. Scroll sideways on small screens.

The long climb

For much of the 1990s, the direction of travel was set partly in advance. From the March 1993 Budget, governments used a "fuel duty escalator", a commitment to raise duty by a set amount above inflation each year. It started at 3%, rose to 5% later in 1993 and to 6% in 1997. In November 1999 the automatic escalator was ended, with future rises to be decided Budget by Budget. Over the decade, the price of a litre of unleaded rose from about 36p in January 1989 to about 85p by July 2000.

Then came September 2000. Protesters blockaded refineries and fuel depots from 7 September, and by 13 September, the BBC reported, more than 90% of filling stations had run dry. Most blockades were called off on 14 September.

Boom, bust and the taxman

The next big shock came from the oil market. In July 2008, as crude oil costs surged, UK pump prices peaked at 119.4p for petrol and 132.9p for diesel. Six months later, after the global financial crisis took hold, they had fallen to 87.3p and 99.2p, a drop of more than 30p in half a year.

Tax moved too. VAT was cut from 17.5% to 15% in December 2008, went back to 17.5% in January 2010 and rose to 20% in January 2011, where it has stayed. In March 2011 fuel duty was cut by 1p to 57.95p a litre and then frozen at that level for 11 years. Petrol still reached a then-record of 142.2p in April 2012.

When the floor fell away

From mid-2014, world oil prices slumped: the government's index of crude oil costs fell by roughly two-thirds between July 2014 and January 2016. By the start of February 2016, petrol was down to 101.4p and diesel to 100.8p, briefly the cheaper of the two.

In spring 2020, the pandemic emptied the roads. Demand for fuel collapsed and, by late May, petrol was averaging 104.9p. It hasn't been that cheap since.

Records, then records again

Russia's full-scale invasion of Ukraine on 24 February 2022 sent prices soaring. On 23 March 2022 fuel duty was cut by 5p, to 52.95p a litre, a cut that has been extended at successive fiscal events ever since. Prices still kept climbing, peaking in the week of 4 July 2022 at 191.6p for petrol and 199.2p for diesel. The 12 months to July 2022 brought the biggest rise in the series, and the following 12 months the biggest fall.

In July 2022 the Competition and Markets Authority launched a study of the road fuel market. Its final report, in July 2023, found that competition between retailers had weakened. It recommended an open data scheme so drivers could compare prices more easily. That became Fuel Finder, which went live on 2 February 2026 and requires forecourts to report price changes within 30 minutes. It's where TankTicker's prices come from.

Less than four weeks later, on 28 February 2026, the US and Israel began strikes on Iran, and the conflict that followed disrupted oil supplies through the Strait of Hormuz. The RAC recorded the biggest monthly rises it has ever seen in March: 20p for petrol and 40p for diesel. Prices eased after a framework deal in June, then climbed again as talks faltered. In mid-April 2026, diesel cost 34p more than petrol, the widest gap in the weekly series. The BBC reports that the UK now imports more than half of its diesel.

The biggest swings

Largest changes in the monthly average price compared with a year earlier, since 2003

Unleaded petrolDiesel

Source: TankTicker analysis of DESNZ Weekly road fuel prices. Each bar compares a month's average with the same month a year earlier. The episodes are ranked by the change in petrol prices, and no two are within 12 months of each other. Scroll sideways on small screens.

Timeline: the moments that moved the pump

1977Four-star petrol averages 17.6p a litre.
March 1993The fuel duty escalator begins. It ends in November 1999.
7 to 14 September 2000Fuel protests and refinery blockades. At the peak, more than 90% of forecourts run dry.
July 2008Petrol peaks at 119.4p and diesel at 132.9p as oil prices surge.
December 2008VAT is cut from 17.5% to 15%, and petrol falls to 87.3p.
January 2010 and January 2011VAT returns to 17.5%, then rises to 20%.
March 2011Duty is cut by 1p to 57.95p, then frozen for 11 years.
April 2012A then-record of 142.2p for petrol and 148.0p for diesel.
2014 to 2016Oil prices slump, and petrol falls to 101.4p.
Spring 2020The pandemic hits demand, and petrol falls to 104.9p.
September 2021E10 becomes the standard petrol in Great Britain.
24 February 2022Russia's full-scale invasion of Ukraine.
23 March 2022Duty is cut by 5p to 52.95p a litre.
4 July 2022Records of 191.6p for petrol and 199.2p for diesel.
8 July 2022 to 3 July 2023The CMA's road fuel market study, which recommends a fuel finder scheme.
2 February 2026Fuel Finder goes live.
28 February 2026The US and Israel begin strikes on Iran. Pump prices see record monthly rises in March.
20 May 2026The 5p duty cut is extended to 31 December 2026.
Week of 12 October 2026Diesel averages 200.04p, the highest in the weekly series.
28 October 2026The Budget extends the cut and freeze to 1 July 2027.

What could happen next

This isn't a forecast. These are the forces analysts are watching, and they pull in different directions.

Oil and shipping. Brent crude fell by more than 17% in the first week of November, Reuters reported, as traders weighed the chances of de-escalation in the Middle East. Some analysts think recovering Gulf exports and higher output elsewhere could create a surplus, which would tend to push prices down. Others, including Rystad Energy, expect only a partial recovery, with attacks on shipping and high freight and insurance costs persisting. That would keep prices higher. Renewed fighting could reverse any fall quickly.
The lag. The RAC says wholesale changes take about a fortnight to reach the pump, so any fall in oil prices takes time to show up on forecourts.
Diesel supply. Damage to refineries in the Middle East and attacks on Russian refineries have reduced the supply of refined fuel. With the UK importing much of its diesel, the gap between diesel and petrol could stay wider than it used to be, even if crude prices ease.
The pound. Oil and fuel are traded in dollars, so a weaker pound makes them more expensive in the UK and a stronger one cheaper.
Tax. Duty is frozen at 52.95p until 1 July 2027. What happens after that will be decided at future fiscal events. Under current tax rates, the RAC Foundation estimates that tax makes up about 47% of the petrol price and 43% of the diesel price.
The road to electric. Sales of new cars powered only by petrol or diesel are due to end in 2030. From April 2028, a pay-per-mile charge on electric cars is planned. Over time, lower fuel demand could change forecourt economics and how much fuel duty raises.

The history suggests one thing: big rises have often been followed by big falls, and the other way round, though rarely on anyone's timetable.

Want to know what it costs near you today? Check live prices at your local forecourts with the TankTicker price finder, using official Fuel Finder data.

About this article: it gives general information only. It isn't financial advice or a price forecast. Figures are national averages, and individual forecourts vary. TankTicker doesn't endorse or criticise any retailer, brand or political party.

Sources

Contains public sector information licensed under the Open Government Licence v3.0. Data used for the charts: data.csv.