Cheap petrol & diesel
Cut your fuel costs by up to 30%
Despite a recent decline in fuel prices over the past six weeks, petrol remains around 45p per litre more expensive than in June 2021, and diesel is up by 17p per litre. However, choosing the right place to fill up and adopting fuel-saving habits can help you reduce expenses. Use our five-step guide to maximize your savings…
Step 1: Make your car more fuel-efficient
Making a few straightforward checks and tweaks to your vehicle can significantly lower fuel usage (with appreciation to the RAC for their contributions to this list). Along with the driving tips provided below to enhance efficiency, these actions could potentially cut fuel expenses by as much as 30%. Plus, they’re an easy and effective way to reduce your environmental impact.
1 – Keep your tyres inflated
Reducing tyre pressure raises drag on your vehicle, leading to higher fuel consumption. Consistently ensure your tyres are at the proper pressure (as overinflation can also boost fuel usage), and your car will require less effort to maintain momentum.
2 – Declutter your car
Reducing the weight of your car makes acceleration easier and more efficient. By decluttering the trunk and avoiding carrying unnecessary items, you can slightly reduce your fuel expenses. Although minimizing the load may not drastically impact fuel consumption, even small savings can contribute to lower overall costs.
3 – Take your roof rack off
A roof rack, even when not in use, can create additional wind resistance for your vehicle, which increases drag and forces the engine to exert more effort. If you aren’t using the roof rack, consider removing it, along with any other elements that could reduce efficiency. Even simple actions like closing windows and removing flags can help your car operate a bit more smoothly.
4 – Turn off air-conditioning at lower speeds
Air conditioning draws power from the engine, leading to increased fuel consumption, so it’s best to turn it off when it’s not essential. Generally, it’s more fuel-efficient to drive with the windows down and the air conditioning off at lower speeds. However, at higher speeds, the additional drag from open windows can reduce efficiency, making it better to use the air conditioning with the windows closed.
Even if you don’t regularly use your air conditioning, it’s a good idea to turn it on occasionally, as prolonged inactivity can cause it to malfunction.
5 – Think about whether you need a full tank of fuel
Fuel adds significant weight to your car, so the fuller the tank, the heavier the vehicle. A lighter car, with less fuel in the tank, tends to drive more efficiently. Therefore, by refueling more frequently and only filling your tank halfway or up to three-quarters, you can potentially improve your car’s fuel efficiency.
However, it’s important to weigh this against fluctuating fuel prices. If prices are on the rise, it may be more cost-effective to fill up your tank when you find a cheaper fuel station, rather than prioritizing weight reduction and later paying more for fuel at a higher price elsewhere.
Step 2: Eight tips to drive more efficiently
You can cover the same distance in the same vehicle, maintaining your speed, while consuming less fuel – which is easier on your wallet and kinder to the environment. The secret lies in driving smoothly. Here are eight essential tips to help you do just that.
1 – Think about road position
To ensure a safer and more efficient driving experience, many of the suggestions in this list emphasize the importance of staying alert and conscious of your position on the road. By doing so, you can plan your maneuvers in advance and make smooth, gradual movements, which ultimately enhances both safety and fuel efficiency.
2 – Accelerators are money pumps – accelerate gradually
Increase your speed gradually. The more forcefully you press the accelerator, the more fuel you’ll consume. However, you can achieve the same speed with significantly less power. A good guideline is to keep your engine below 3,000 revolutions per minute (RPM). Additionally, rapid acceleration often leads to harsh braking, which is far from fuel-efficient.
3 – Change up a gear sooner
To optimize fuel efficiency, always drive in the highest gear feasible without overworking the engine. Shift up sooner than what might feel instinctive—it might reduce your acceleration speed, but as this is our initial tip, it’s a beneficial adjustment. If your vehicle is equipped with a fuel efficiency indicator, you’ll notice the effect of this change almost immediately.
4 – The brake is a money burner
When it’s safe to do so, try to decelerate gradually rather than abruptly applying the brakes. Using the brakes converts the energy you’ve invested in your vehicle into heat. Instead, leverage the car’s momentum whenever possible by positioning yourself well on the road. Frequent braking throughout your trip will lead to increased acceleration needs, which in turn results in higher fuel consumption.
5 – Listen to the noise of your engine
If you hear the sounds of rapid acceleration and screeching brakes, it’s a sign that your driving needs adjustment. Picture yourself driving from one traffic light to the next while exhibiting this behavior. Meanwhile, the driver behind you, who accelerates and decelerates more smoothly, will still end up behind you at the next light, but they’ll have expended significantly less effort and fuel to get there.
6 – Keep moving if you can
The initial stretch you drive is often the costliest. Getting a car moving requires a significant amount of energy. Therefore, if you can smoothly coast up to a traffic light as it transitions from red to green without coming to a halt, it’s more efficient than stopping and starting again.
7 – Save cruise control for motorways
On straight, even roads, cruise control can be beneficial for fuel efficiency by keeping a steady speed and avoiding needless acceleration. However, using it frequently on uneven terrain can lead to higher fuel consumption, as it reacts more slowly to changes in gradient and will accelerate longer than a driver might when climbing a hill. It’s best to use cruise control on motorways or similarly flat routes where its benefits are maximized.
8 – Coasting in neutral can be cheaper – but it’s dangerous
Putting your car in neutral and coasting might seem like it conserves fuel, but it’s actually quite risky – avoid this practice. Keeping the car in gear ensures you have immediate control over the accelerator to respond to unforeseen dangers. Additionally, vehicles are better equipped to handle sharp turns when they are in gear.
Ultimately, it boils down to a simple principle…
The harder you press the accelerator, the more fuel you consume.
By keeping this in mind and being aware of your driving position, you can significantly extend the distance you can travel on a single tank of gas or diesel.
Although it can be challenging to precisely determine the exact fuel savings from improving your vehicle’s efficiency and adopting better driving habits, the AA reports that a recent eco-driving trial involving 50 of its employees resulted in an average savings of 10% over the course of a week, with the highest individual saving reaching an impressive 33%.
Step 3: Find the cheapest petrol or diesel prices in your area
A simple and effective method to locate the most affordable fuel station in your area for either petrol or diesel, be it standard or premium, is by using a handy free comparison tool.
You might recall news from July of last year regarding a Government fuel price monitor. This scheme aims to mandate retailers to disclose their prices, which would enable drivers to compare them in real time and foster greater competition.
Although these proposals are promising, they may not be implemented immediately. In the meantime, tools like the one mentioned below are the best option for reducing your fuel expenses. For further details on the proposed scheme, see the Gov.uk website.
Discover the most affordable gas stations near you by signing up and providing your postcode, town, or city, along with your preferred travel distance (up to 20 miles).
It covers about 8,300 forecourts across the UK. There’s also a an app to make it easier to use on your phone.
By using this tool, you could potentially save between £10 and £15 when refueling a standard family car. For instance, on Tuesday, June 18, the price of unleaded fuel within five miles of a postcode in Durham ranged from 141.7p to 167.9p per litre. Although the price difference per litre may seem small, it could mean paying up to 18% more if you choose the more expensive station.
Keep an eye out for temporary fuel discount promotions that occasionally become available. While we don’t have any details on such offers at the moment, we will update this information as soon as new promotions arise.
Use loyalty schemes
Purchasing petrol or diesel is a routine expense, and over the course of a year, it adds up more than you might expect—£30 per week totals over £1,500 annually. Many fuel stations, including those at supermarkets, offer loyalty programs, so it’s beneficial to enroll in the schemes for the stations you frequent the most, as this can provide some additional savings.
That said, don’t choose a filling station solely based on its loyalty program. The benefits from these programs are relatively minor compared to the significant differences in fuel prices between various stations. For more ways to save, check out our guides on maximizing Nectar points and optimizing Tesco vouchers.
Other filling-up tips
There are several other ways to cut the cost of petrol and diesel:
1 – Always fill up at least 50 miles before your tank’s dry
If you act quickly, there’s no need to panic and you’ll have ample time to find a less expensive gas station. If you delay, you’ll likely end up filling up at the first station you encounter, which might lead to paying a higher price.
Although a lighter vehicle does consume less fuel, with only 50 miles worth of fuel remaining, the impact of this difference is minimal.
2 – Only use ‘better fuel’ if your car can cope
Numerous petrol stations offer ‘high performance’ fuels, but for the majority of standard cars, these fuels don’t provide any noticeable performance benefits. Therefore, it’s advisable to only use these premium fuels if you own a sports car or have received specific recommendations that your vehicle will benefit from them.
According to the AA, high performance fuels are generally too expensive for everyday use in most cars. However, if you’re interested in using them, it’s recommended to fill up with high performance fuel every third or fourth tank to help maintain engine cleanliness and efficiency, before switching back to regular fuel.
3 – Filling up at night won’t be a big Economics
The idea that refueling at night gives you more fuel is somewhat of an urban legend, as the difference is extremely minimal—only a few pennies at most. Fuel pumps are calibrated based on volume, so filling up during cooler nighttime temperatures might result in a very slight increase in the amount of fuel you get.
4 – Don’t try to put more in after the clunk
Topping off your fuel tank can negatively impact your vehicle’s efficiency since it increases the car’s weight (check out tips for enhancing fuel efficiency). However, if you need to fill up completely, avoid continuing once you hear the fuel nozzle click off. Continuing past this point means you’re overfilling.
Step 4: Pay using a cashback card
Cashback cards give you a percentage of your spending back each time you use them. They can be an effective way to reduce your fuel expenses, but it’s crucial to follow this key principle when using a cashback credit card:
Always set up a direct debit to pay off the entire balance each month. This way, you avoid accruing interest, which could negate any benefits you receive from cashback.
Credit card companies offer cashback or reward programs to motivate you to use their cards and incur interest charges. The interest costs associated with cashback cards often outweigh the benefits you earn. For more information on what to consider before applying, refer to our guide on credit card rewards.
Be aware that each application for these cards will involve a credit check. Applying for multiple cards in a short span can impact your future creditworthiness. For more details, consult our Credit scores guide.
The easy way to pay off in full
You can conveniently manage this through direct debit, which lets the credit card company automatically withdraw a varying amount each month that matches your balance. However, some companies intentionally exclude the option to ‘repay in full’ when you arrange a direct debit, as it is less profitable for them. If you encounter this issue, reach out to them and request that your direct debit be configured to pay off your balance in full.
The top cashback credit card
With our highly recommended American Express reward card, the Platinum Cashback Everyday, you can earn a 5% bonus cashback on all purchases, capped at £100. Following the introductory bonus, cashback rates are tiered and go up to 1%. However, to qualify for any cashback, you must spend over £3,000 annually.
For more comprehensive details and additional options, check out Top-Paying Rewards Credit Cards.
The top cashback (and easy to apply for) debit card
With Chase’s app-only current account, you can earn 1% cashback on most purchases, capped at £15 per month, for a minimum of one year. There’s no requirement to switch from your existing bank to open the account, no hard credit check is necessary, and there’s no minimum deposit required during the first year. Additionally, it’s highly recommended for spending abroad.
For detailed information and application instructions, refer to Best Reward Debit Cards.
Step 5: Share the driving to cut your petrol costs
A simple method to reduce fuel expenses is by minimizing your driving. For instance, consider carpooling with colleagues or friends. Various websites can help match people who are traveling similar routes.
- Liftshare
Sign up on Liftshare by providing your information and specifying the trip you want to share. You can also search for potential matches before completing your registration to find commuters with similar routes.
Launched in 1998, the site claims that its users save more than £1,000 annually on average. It features a handy savings calculator to estimate your travel expenses and potential savings from carpooling.
- BlaBlaCar
Established in France in 2006, BlaBlaCar expanded to the UK in 2011 and reports having 26 million active users in 21 countries. While you can browse for possible rides without creating an account, registration is required for arranging or requesting a ride, which can be done for free via Facebook or email.
Anything to watch for?
- Be safe
The platforms keep your information safe, but caution is crucial when traveling. For initial meetings, choose a public location, inform friends or family of your plans, and verify the other person’s identity by checking their ID to confirm they are who they claim to be.
- Taking passengers shouldn’t affect insurance
If you’re offering a ride and requesting a contribution for fuel, the Association of British Insurers indicates that your car insurance should remain unaffected as long as you’re not making a profit.
Nevertheless, it’s a good idea to confirm with your insurance provider to be absolutely certain.
How much can you save?
Following our system can result in significant savings. For instance, if you drive 15,000 miles annually and your vehicle achieves 35 miles per gallon (12.4 km per litre), the cost of fuel at the average UK price would be around £2,826 per year as of June 2024. By reducing this cost by 25%, you could save £706 annually.
To estimate your initial running costs, you can use the fuel consumption search tool on Gov.uk, which provides an approximate cost based on new vehicles. Additionally, the motoring website Honest John offers a useful ‘real miles-per-gallon’ section where drivers share the actual fuel efficiency they experience with their cars.
Fuel cost-cutting
| ANNUAL MILEAGE | AVERAGE ANNUAL COST (1) | COST IF CUT BY 5% | COST IF CUT BY 20% | COST IF CUT BY 25% | POTENTIAL MAX SAVING |
| 5,000 | £942 | £895 | £754 | £707 | £235 |
| 15,000 | £2,826 | £2,685 | £2,261 | £2,120 | £706 |
| 30,000 | £5,653 | £5,370 | £4,522 | £4,240 | £1,413 |
(1) Cost of unleaded at 35 miles per gallon (12.4 km per litre) at 145.18p per litre. Updated June 2024.
How does the cost of fuel break down?
Taxes constitute a significant part of the expense associated with a litre of fuel. The existing fuel duty rate stands at 52.95p per litre for both petrol and diesel. Additionally, there is VAT applied at 24.2p per litre for petrol and 25.06p per litre for diesel.