UK motorists are heading into the Christmas period with some rare good news. The gas price at UK forecourts has fallen to its lowest level in almost four years, giving households a welcome break after several winters of high fuel costs.
Industry data shows petrol prices have been steadily declining since late autumn, and experts say the trend is coming at exactly the right time for festive travel.
What is driving the fall in the UK gas price?
The recent drop in the UK gas price is mainly down to global supply conditions and seasonal demand patterns rather than any single domestic policy change.
Wholesale oil markets have remained well supplied throughout the final quarter of the year, while winter demand for fuel is naturally lower than during the summer holiday season.
At the same time, European refineries have completed planned maintenance, meaning more fuel is reaching the market at a cheaper cost.
Retail competition, particularly among supermarket forecourts, has also played a role. With margins under pressure, retailers have been quicker to pass savings on to drivers than in previous years.
RAC fuel spokesperson: “We’re finally seeing a sustained period where lower wholesale prices are being reflected at the pumps. This has made a noticeable difference for drivers in December.”
How low is the gas price compared with previous years?
Petrol prices are now significantly lower than they were during the past two Christmas periods and sit well below the peaks seen during the energy crisis.
UK petrol price comparison (per litre)
| Time period | Average petrol price | Typical cost to fill a 55-litre tank |
|---|---|---|
| Christmas 2022 | 155p | £85.25 |
| Christmas 2023 | 144p | £79.20 |
| Christmas 2024 | 142p | £78.10 |
| December 2025 (current) | 132p | £72.60 |
| Early 2026 (forecast) | 128p–130p | £70.40–£71.50 |
Industry analysts say this makes current prices the lowest since late 2021, before global energy markets became highly volatile.
Petrol prices near four-year low
— r/uknews, Reddit
Are fuel prices the same across the UK?
While the national average gas price has fallen, drivers are still seeing noticeable regional differences.
Northern England, parts of Wales, and central Scotland are consistently among the cheapest areas, with some supermarket forecourts offering petrol below 130p per litre.
London and the South East remain the most expensive regions due to higher operating costs, land prices, and congestion-related expenses.
Even so, prices in traditionally expensive areas are still lower than they were last Christmas.
Will gas prices continue to fall after Christmas?
Most fuel analysts believe prices are unlikely to rise sharply in early 2026, provided global oil markets remain stable.
Seasonal trends suggest January and February are often among the cheapest months for fuel, as driving demand stays low and supply levels remain comfortable.
AA fuel analyst: “Christmas usually marks the point where fuel prices settle close to their annual lows. If there are no unexpected global disruptions, drivers should continue to benefit into the New Year.”
However, experts caution that fuel prices remain sensitive to geopolitical tensions and changes in oil production decisions.
How much could UK drivers save this winter?
For everyday motorists, the drop in gas prices translates into real savings. A typical family car now costs around £6–£7 less to fill up than last Christmas, while drivers covering long motorway journeys over the festive period could save £10 or more compared with 2024.
For small businesses, delivery drivers, and commuters, the cumulative savings over several months could be substantial.
