Asger Risom
Petrol drivers face 17p-a-mile costs despite fuel price dip.
Petrol prices have dipped again, offering modest relief at the pumps as drivers head into the new year. But fresh figures show that the cost of running a petrol car remains significant, even before maintenance and other expenses are factored in.
New calculations put January’s average cost at around 17p per mile for petrol vehicles.
Fuel prices ease
According to the RAC, the average UK price for unleaded petrol now stands at 134.06p per litre, while diesel averages 142.96p per litre. That marks a slight fall compared with October, when petrol was priced at around 135.55p per litre.
By early November, prices had already dipped to 134.97p, and they have since edged down by almost another penny as January begins.
Despite the drop, fuel costs remain a major expense for motorists covering high mileages.
Cost per mile
Motoring and insurance comparison site Nimblefins estimates that the average fuel economy of a UK petrol car is about 36 miles per gallon. Based on current pump prices, that translates to a running cost of roughly 17p per mile.
The figure does not include other ownership costs such as servicing, insurance, road tax or repairs, which can add substantially to annual motoring bills.
For drivers commuting long distances, even small changes in fuel prices can have a noticeable impact over the course of a year.
EV tax plans
Alongside fuel costs, attention has also turned to future motoring taxes. The government has confirmed plans to introduce a new pay-per-mile charge for electric vehicles.
Chancellor Rachel Reeves announced proposals for a 3p-per-mile tax on EVs, which is scheduled to take effect from 2028 following a consultation. The Treasury says the move is intended to offset declining fuel duty revenues as more drivers switch away from petrol and diesel.
When combined with the average cost of home charging, the government estimates EV running costs would sit between 5p and 11p per mile, with the new tax adding around £250 a year for the average electric car driver.
Political sensitivities
Motoring groups have warned that per-mile charging risks discouraging drivers from making the transition to electric vehicles. Previous governments have shied away from similar schemes, often described as road pricing, because of concerns about public backlash.
Under the current proposal, EV drivers would estimate their annual mileage in advance and pay the charge on top of vehicle excise duty. Drivers covering more miles than expected would need to top up their payment, while those driving less could carry unused credit into the following year.
Sources: RAC, Nimblefins, UK Treasury
