Petrol stations in the UK number roughly 8,350, and the price you pay at them can differ by more than 20p per litre depending on operator, location and timing. Supermarket forecourts are usually the cheapest, motorway services are the most expensive, and comparing prices before you fill up typically saves a driver £100 to £200 a year.
That gap matters because fuel is the single largest variable running cost for most UK drivers and small fleets. A driver covering 8,000 miles a year in a typical petrol car buys around 800 litres of fuel, so a 10p per litre difference between petrol stations is worth about £80 a year for one car, and far more across a fleet. This guide explains how the UK forecourt market works, why prices vary so widely, and the practical steps that cut your fuel bill without changing how much you drive.
How many petrol stations are there in the UK?
The UK has approximately 8,350 petrol stations, down from over 18,000 in 1992, according to industry data compiled for the Department for Energy Security and Net Zero. Supermarkets operate around 1,500 of these sites but sell roughly 40 per cent of all road fuel, because their forecourts are larger and consistently cheaper than average.
The long decline in site numbers has been driven by thin retail margins on fuel and rising land values. Small independent forecourts closed in large numbers through the 1990s and 2000s, while the surviving sites grew bigger and added convenience shops, valeting and food outlets, which is where much of a modern forecourt's profit actually comes from.
Ownership falls into four broad groups:
- Supermarket forecourts run by Tesco, Sainsbury's, Asda and Morrisons, usually attached to a superstore.
- Oil company branded sites flying BP, Shell or Esso colours, some company owned and many operated by independent dealers under licence.
- Independent chains such as MFG, EG Group and Rontec, which often trade under familiar oil company brands even though the oil companies do not set their pump prices.
- Motorway service area operators such as Moto, Welcome Break and Roadchef, which hold captive locations and price accordingly.
The brand on the totem sign tells you very little about who sets the price. Two Shell branded petrol stations five miles apart can be run by different operators and charge prices 8p per litre apart for identical fuel.
Why do petrol station prices vary so much?
Petrol station prices vary because each site sets its own pump price based on local competition, operating costs and buying terms, on top of a fixed national tax burden. Fuel duty is 52.95p per litre and VAT adds 20 per cent, so tax makes up roughly half the pump price; the rest is where the variation happens.
Break a typical litre of petrol down and the structure becomes clear. The wholesale cost of the fuel itself tracks global oil prices and the pound to dollar exchange rate. Fuel duty, set by the government and unchanged since 2011 apart from the temporary 5p cut introduced in 2022, is identical everywhere. VAT is charged on the whole amount, including the duty. What remains is the retailer's gross margin, usually somewhere between 5p and 15p per litre, and this is the part that responds to competition.
The practical consequences for drivers are predictable:
- Local competition is the biggest factor. A town with a supermarket forecourt forces every nearby station to price close to it. A rural area with one independent site 15 miles from the nearest rival will pay several pence more per litre.
- Motorway services charge the most. The Competition and Markets Authority has repeatedly found motorway fuel priced 15p to 25p per litre above the national average, because drivers there have little realistic alternative.
- Prices are sticky on the way down. The CMA's road fuel market study found that pump prices rise quickly when wholesale costs increase but fall slowly when they drop, a pattern often called rocket and feather pricing.
- Region matters less than you might think. Northern Ireland is consistently the cheapest UK region for fuel, but within Great Britain the gap between an expensive and a cheap forecourt in the same town is usually bigger than the gap between regional averages.
You can check the official duty and VAT rates on the government's fuel duty page, and the CMA now publishes forecourt price data that retailers must supply under its open fuel price data scheme.
How can I find the cheapest petrol station near me?
The fastest way to find a cheap petrol station is to compare live local prices before you leave, using a price checking tool such as CarFile's free UK fuel prices map, then fill up at a supermarket forecourt on a journey you were already making. This routinely saves 5p to 10p per litre against paying at the first station you pass.
The UK is unusually well set up for fuel price comparison because major retailers now report their prices to the CMA scheme, and a statutory Fuel Finder scheme requiring near real time price updates is being rolled out. That data feeds the comparison tools, so the prices you see are the prices on the totem, not estimates.
A few rules of thumb make the comparison worthwhile rather than a false economy:
- Never make a special trip for cheap fuel. Driving five miles out of your way burns roughly 40p to 60p of fuel each way in a typical car, which wipes out the saving on anything less than a full tank. Fill up where you already travel.
- Fill up before the motorway, not on it. With motorway services charging 15p to 25p per litre more, brimming the tank at a supermarket before a long trip saves £8 to £12 on a 50 litre fill.
- Compare on your regular routes, not just near home. The cheapest station on your commute is often better value than the cheapest station in your postcode.
- Watch the trend, not just today's price. When wholesale prices are falling, waiting two or three days to fill up can save another 1p to 2p per litre because forecourts cut prices gradually.
If you want a deeper method for weighing up petrol, diesel and electric running costs side by side, CarFile's guide on how to compare fuel costs walks through the calculations step by step.
Are supermarket petrol stations cheaper, and is the fuel any good?
Supermarket petrol stations are typically 2p to 5p per litre cheaper than the UK average, and their fuel meets exactly the same British and European standards as oil company branded fuel. All petrol sold in the UK must meet BS EN 228 and all diesel must meet BS EN 590, regardless of which forecourt sells it.
The persistent myth that supermarket fuel is somehow inferior does not survive contact with the supply chain. Supermarkets buy fuel from the same refineries and import terminals as everyone else; in many cases the tanker that fills a Tesco forecourt on Monday fills a branded station on Tuesday. The genuine difference is additive packages: premium branded fuels such as Shell V-Power or BP Ultimate contain proprietary detergent and friction additives, and standard branded fuels carry slightly different additive blends than supermarket fuel. For a modern, well maintained engine doing normal driving, the measurable difference for standard grades is negligible.
Here is how the main types of petrol stations compare on typical pricing and practicalities:
| Station type | Typical price vs UK average | Best for | Watch out for |
| --- | --- | --- | --- |
| Supermarket forecourt | 2p to 5p cheaper | Routine fill ups, loyalty point stacking | Queues at peak times, some sites card only overnight |
| Oil company branded (dealer operated) | Around average to 3p dearer | Premium fuels, longer opening hours | Price varies widely between sites with the same brand |
| Independent chain | Around average | Rural coverage, convenience | Less price transparency at smaller sites |
| Motorway services | 15p to 25p dearer | Genuine emergencies only | The most expensive fuel in the country |
One caveat applies to E10 petrol, the standard grade since September 2021, which contains up to 10 per cent renewable ethanol. Some older vehicles, mostly those built before 2002 and some early 2000s models, are not compatible and should use E5 super unleaded instead. Compatibility depends on the vehicle, not the forecourt: E10 from a supermarket and E10 from a branded station are the same product.
What should small fleet operators know about petrol stations and fuel cards?
Fleet fuel spend rewards systematic control more than clever shopping. A five vehicle fleet averaging 15,000 miles per vehicle per year buys roughly 7,500 litres of fuel annually, so a consistent 5p per litre saving is worth about £375 a year, while untracked fuel spend commonly leaks 5 to 10 per cent through inefficient buying, unrecorded private mileage and missed VAT reclaims.
Three areas deserve attention:
Fuel cards are about control first, discounts second. Cards from the major networks give you consolidated HMRC compliant invoices, VAT itemisation per transaction and restrictions on what drivers can buy. Some offer fixed weekly wholesale linked pricing, which usually undercuts motorway and rural forecourts but can be beaten by supermarket pump prices. Check which petrol stations accept your card locally before committing, because a cheap card your drivers can only use at expensive sites saves nothing.
Set a fuelling policy, not just a card. Tell drivers which stations or station types to use on their regular routes, ban motorway fill ups except in emergencies, and require odometer readings at each fill. These three rules alone typically cut fleet fuel cost per mile noticeably within a quarter.
Track cost per mile, not just total spend. Total fuel spend rises and falls with workload; cost per mile exposes real problems such as a vehicle developing a fault, a driver with a heavy right foot, or fuel theft. CarFile's expense tracking logs every fill against the vehicle and calculates cost per mile automatically, so an anomaly shows up in days rather than at year end. For the wider picture of what each vehicle truly costs to run, the free cost per mile calculator covers fuel, maintenance, tax and depreciation together.
Frequently Asked Questions
How many petrol stations are there in the UK in 2026?
The UK has approximately 8,350 petrol stations, a figure that has fallen from more than 18,000 in the early 1990s. Around 1,500 are supermarket forecourts operated by Tesco, Sainsbury's, Asda and Morrisons, and these sell roughly 40 per cent of all road fuel because they consistently price below the national average.
Why is motorway petrol so expensive?
Motorway petrol stations charge 15p to 25p per litre above the UK average because drivers on a motorway have few realistic alternatives, and service area operators pay high rents for captive locations. The Competition and Markets Authority has highlighted motorway fuel pricing as a persistent problem. The practical fix is simple: fill your tank at a supermarket or town forecourt before joining the motorway.
Is supermarket petrol worse quality than branded petrol?
No. All petrol sold in the UK must meet the BS EN 228 standard and all diesel must meet BS EN 590, whichever forecourt sells it, and supermarkets buy from the same refineries and terminals as branded retailers. Premium fuels such as Shell V-Power contain extra additive packages, but standard supermarket unleaded and standard branded unleaded perform equivalently in a modern, well maintained engine.
How much of the UK petrol price is tax?
Roughly half of the UK pump price is tax. Fuel duty is charged at 52.95p per litre on petrol and diesel, and VAT at 20 per cent is then applied to the full price including the duty. At a pump price of 135p per litre, tax accounts for about 75p, with the remainder covering the wholesale fuel cost, delivery and the retailer's margin.
Can I check live petrol station prices before I drive?
Yes. UK fuel retailers now report their pump prices under a Competition and Markets Authority data scheme, and comparison tools display them by location. CarFile's free UK fuel prices map at carfile.app/uk-fuel-prices shows current prices at petrol stations near any UK location, so you can pick the cheapest forecourt on your route before you set off rather than guessing at the roadside.
Do petrol stations charge more at certain times?
UK forecourts rarely change prices by time of day, but they do follow wholesale costs with a lag. Prices rise within days of a wholesale increase and fall more slowly when wholesale costs drop, a pattern regulators call rocket and feather pricing. When oil prices are falling, delaying a non urgent fill up by a few days often saves 1p to 2p per litre.
Conclusion: pay forecourt attention once, save all year
Petrol stations in the UK sell an identical, regulated product at prices that differ by 20p or more per litre, which makes fuel one of the easiest running costs to cut. Fill up at supermarkets on routes you already drive, avoid motorway forecourts, check live prices before long journeys, and track what each vehicle actually spends so savings show up in the numbers rather than in good intentions.
CarFile puts all of that in one place: live fuel prices near you, automatic expense and cost per mile tracking, plus MOT, tax and service reminders for every vehicle you run. It is free to get started, whether you look after one car or a small fleet. Create your free CarFile account and see what your driving really costs.