Why Do Fuel Prices Differ Across the UK?

Jan 29, 2024

As you travel through the UK on a long drive, you might notice that the price per litre for fuel varies quite significantly. Here, we’ll run through some of the major factors leading to these discrepancies.

1. Transportation Costs:

The distance covered on the journey from the refinery to the petrol pump impacts the price we pay. Regions with less access to major transportation routes or those located in remote areas might experience higher prices due to increased transportation costs.

2. Local Supply & Demand:

As always, the economic fundamentals of supply and demand play a part - people living in areas with high fuel demand and limited fuel supply will see the highest prices. Urban centres will usually have a greater number of stations, which helps increase competition and keeps prices in check.

3. Distribution & Storage Expenses:

Factors such as poorer infrastructure development and higher land prices can impact what you pay at the petrol pump. This is because they influence the ease with which the petrol can be distributed and the cost of storing it. Again, rural areas are more likely to lose out here and pay more for each mile.

4. Local Taxes & Geopolitical Factors:

While international geopolitical factors and national tax often play the biggest role in how much we pay, there are local factors that can play a role too such as variations in taxes and political and social factors specific to the given area.

5. Tourism:

Popular tourist destinations often experience greater fluctuations in petrol prices - during peak season, there is usually a sharp increase in demand which can significantly affect how much you pay.

Conclusion:

Fuel prices vary across the UK due to factors such as the cost of transportation and storage, ease of distribution and the balance of supply and demand in a location. This explains why you might find petrol more expensive out in the country than in town - and why it’s always more expensive on the motorway.

These factors are ever changing as the landscape and supply chain of the UK develops which is a great reason to keep on top of prices in your area with Petrol Map.

These factors are ever changing as the landscape and supply chain of the UK develops which is a great reason to keep on top of prices in your area with Petrol Map. For more ideas on how to save money, take a look at our comprehensive guide to unlocking better fuel efficiency.

To see this variation at play in real life, check out our roundup of the most scenic road trips in the UK.