Petrol prices averaged 169.5p a litre in September 2026, according to the Office for National Statistics, with diesel averaging 192.5p a litre, the highest since 2022. Petrol prices were up 29.8% on a year earlier, making motor fuel one of the main drivers of the rise in inflation to 3.5% in September. For drivers, the cost of filling a typical family car has risen sharply, adding to household bills at a time when energy and food prices are also higher.
Brent oil reached $131 a barrel on 15 September, and the United States Energy Information Administration expects it to average $105 in the final quarter of 2026. The EIA said in its October Short-Term Energy Outlook, published on 6 October, that disruption to oil supplies had pushed the daily Brent price as high as $131. The EIA now expects Brent to average $105 a barrel in the last three months of 2026, $14 more than it forecast a month earlier, and $96 across 2026 as a whole, compared with $69 in 2025.
Petrol
In the United Kingdom, the Budget on 28 October extended the 5p fuel duty cut to July 2027, offering some relief to drivers. The Chancellor also extended the VAT cut on domestic electricity and announced a £100 household energy payment for households in Council Tax bands A to D in England. Those measures were designed to give families breathing space while energy costs remain high, although they do not directly cap the price of petrol or diesel.
For businesses that rely on road transport, higher fuel costs add to delivery and logistics bills. Hauliers, taxi firms and delivery companies face higher operating costs, which they may pass on to customers through higher prices. That effect feeds into inflation more widely, as transport costs affect the price of goods in shops. The Bank of England cited higher energy prices as a key reason for raising Bank Rate to 4% on 5 November.
Drivers can reduce costs by comparing prices at different forecourts, keeping tyres at the correct pressure and driving smoothly, but the main driver of pump prices remains the wholesale cost of oil and the exchange rate. With Brent expected to stay above $100 for the rest of the year, pump prices are likely to remain high into the winter, even with the fuel duty cut in place.
Source: VOIPublisher
