Petrol Drivers Face 16p Per Mile Charges Under New February Scheme

Petrol drivers in the UK are facing new charges as part of a significant overhaul in fuel pricing transparency. Beginning in February, a new scheme mandates that all filling stations must report fuel prices to a government database within 30 minutes of any changes. This initiative aims to help drivers find competitive prices easily.

Petrol Prices at Record Lows

Recent data from the RAC indicates petrol prices have dropped to their lowest levels in five years. Currently, unleaded petrol is averaging 131.9p per litre, while diesel stands at 140.7p per litre. Notably, prices have decreased by 3p over the past month for both fuel types.

Calculating Costs: 16p Per Mile

According to motoring website Nimblefins, petrol vehicles typically achieve an average of 36 miles per gallon (mpg). At current prices, this translates to a cost of approximately 16.54p per mile for petrol car owners. This figure excludes maintenance and other associated vehicle costs.

Government Actions for Price Transparency

• Fuel stations must report price changes within 30 minutes.
• Third-party apps can access data from the new Fuel Finder database.
• Drivers are encouraged to report discrepancies between listed prices and pump prices.

Edmund King, president of the AA, has expressed optimism about the new measures. He stated that these changes should empower consumers to better compare prices from various petrol stations, encouraging competition and potentially lower prices overall.

Future of Electric Vehicle Charges

In addition to petrol charges, the government is introducing a pay-per-mile levy targeting electric vehicles (EVs). Chancellor Rachel Reeves announced plans for a 3p-per-mile charge starting in 2028. This new taxation aims to address declining fuel duty revenue as more drivers transition to EVs.

Expected Costs for EV Owners

Under the proposed scheme, EV owners will estimate their annual mileage and pay an additional charge on top of their vehicle excise duty (VED). If drivers exceed their mileage estimate, they will need to pay extra, although unused funds may roll over to the next year.

For context, at the 3p-per-mile rate, a trip from London to Edinburgh would cost £12, while travel from Cambridge to Bristol would be around £5.

Conclusion

The UK government is taking significant steps to create a more transparent and competitive fuel market. As petrol prices decline and new charges for electric vehicles emerge, both petrol and EV drivers will need to adapt to these changes. The goal is to ensure a fairer system for all motorists while supporting the transition to cleaner vehicles.