NI boasts UK’s cheapest fuel as prices dip, but retailers’ profit margins stall bigger savings

Drivers across the UK welcomed a long-awaited drop in fuel prices in March, with Northern Ireland leading the way as the region with the cheapest petrol and diesel at the pump.

New data from RAC Fuel Watch today, Thursday 3 March, reveals that after six months of stubbornly high costs, unleaded and diesel prices fell by nearly 4p per litre last month, offering some relief just in time for Easter road trips. However, experts warn that pump prices should have fallen further, with retailers opting for wider profit margins instead of passing on the full savings to motorists.

At the end of March, the UK average price for unleaded petrol dropped to 136.03p per litre, down 3.6p from 139.62p at the start of the month—a level not seen since late November 2024. Diesel followed suit, falling 4p from 146.46p to 142.51p, the lowest since early December 2024.

For a typical 55-litre family car, this translates to a fill-up cost of £74.82 for petrol (down nearly £2) and £78.38 for diesel (down £2.17).

According to the RAC, Northern Ireland stands out as the best place to refuel, with no driver in the region paying more than 137p per litre for petrol or 141p for diesel—well below the UK averages.

Meanwhile, savvy drivers elsewhere can find even bigger bargains by shopping around. RAC analysis shows some forecourts, including supermarkets, offering unleaded for as low as 126p per litre—a 10p saving compared to the national average—and diesel for 131p, slashing £6 off a full tank.

The price drop was driven by a dip in oil prices below $70 a barrel and a subsequent fall in wholesale fuel costs, spurred by growing concerns over the global economic outlook.

Yet, despite wholesale prices hitting their lowest since early October, the RAC argues that pump prices haven’t reflected the full extent of these reductions. The culprit? Retailers are pocketing larger margins, a trend highlighted this week by the Competition and Markets Authority (CMA) in its latest report.

Simon Williams, RAC head of policy, welcomed the relief but expressed frustration at the missed opportunity for bigger savings.

“Drivers are finally seeing some respite from high pump prices, perfectly timed for the Easter holidays and one of the year’s busiest travel periods,” he said. “But it’s disappointing that prices haven’t fallen further or faster. Retailers are choosing higher margins, and it’s drivers—especially in areas with little competition—who are paying the price.”

Williams pointed to the CMA’s new powers to monitor fuel pricing and the Government’s push for retailers to update prices publicly within 30 minutes of changes as potential game-changers. “We hope this will drive fairer pricing across the board,” he added.

However, he cautioned that rising crude oil prices could soon reverse the downward trend, urging drivers to act quickly and seek out the best deals.

For Northern Ireland’s motorists, the combination of consistently low prices and the March dip is a double win. Across the UK, the RAC advises drivers to use tools like the free myRAC app to locate the cheapest fuel stations, comparing prices against the national averages published on RAC Fuel Watch.

“Don’t assume your usual forecourt is still the best value,” Williams warned. “Both petrol and diesel can be found for much less if you shop around.”

As Easter approaches, millions of drivers will hit the roads, but the message is clear: while Northern Ireland enjoys the UK’s lowest fuel costs, retailers’ reluctance to fully pass on wholesale savings means the relief could—and should—have been even greater.