The Welsh location with the most expensive fuel in the UK

A new study has revealed the cheapest and the most expensive places for fuel in the UK.

Tower Hamlets (in London) residents spend the smallest proportion of their income, just 5.39%, on fuel compared to any other area in the UK, while people in Merthyr Tydfil spend 11.85% of their weekly income on a full tank of petrol, the highest percentage in the UK.

A tank of fuel costs residents from the Valleys town, on average, £69.93, a big chunk of their average weekly income of £590.

The research analysed fuel prices and income data across each local authority to identify where filling up a tank puts the highest and lowest strain on household budgets.

Despite not having the cheapest raw fuel prices, Tower Hamlets benefits from a high average weekly income of £1,243, making a full 50-litre tank of petrol (£66.98) represent just 5.39% of weekly earnings.

Southwark ranks second in the UK for fuel affordability, with residents spending 7.06% of their weekly income (£934) on a full tank of petrol. A 50-litre tank in the London borough costs an average of £65.97.

Camden takes third place with residents spending 7.14% of their weekly income (£952) on a full tank of petrol costing £67.95. The data shows a clear advantage for Londoners, with Islington and Lambeth completing the top five at 7.14% and 7.34%, respectively.

The data reveals that London continues to dominate the rankings, with Westminster ranking sixth for fuel affordability with residents spending 7.37% of weekly income on a full tank of petrol. Newham (7.47%) and Hackney (7.48%), round out the top eight.

Outside of London, Hertfordshire residents pay some of the lowest fuel costs in the country, with Stevenage (7.58%) and Three Rivers (7.61%) rounding out the top ten.

The study also identified the places with the cheapest raw fuel prices, regardless of local incomes. Dundee City offers the UK’s cheapest petrol at £1.26 per litre, while Ashfield in Nottinghamshire has the lowest diesel prices at £1.33 per litre.

At the other end of the scale, Merthyr is the least affordable place for fuel. Residents spend 11.85% of their weekly income (£590) on a full tank of petrol costing £69.93. This is more than double the percentage spent in Tower Hamlets.

Oadby and Wigston in Leicestershire is the second least affordable area, with residents spending 11.74% of their weekly income on petrol. Bolsover in Derbyshire has the third least affordable fuel costs at 11.73% of weekly income.

The study found that fuel costs are particularly burdensome in areas with lower average incomes. In Pendle, where the average weekly income is just £575 (the lowest in the study), residents spend 11.54% of their earnings on a full tank of petrol.

A spokesperson commented on the findings:

“The research shows a striking difference in how fuel costs impact households across different parts of the UK. While the actual price at the pump matters, what’s more important is how those prices relate to local earnings.

“In areas like Tower Hamlets, higher average wages help offset fuel costs, meaning residents spend proportionally less of their income filling up their tanks. This contrasts sharply with places like Merthyr Tydfil, where lower incomes mean fuel costs take a much bigger bite out of weekly budgets.”

“These findings highlight how regional economic differences can affect the real cost of living. For families in areas where fuel consumes over 10% of weekly income, rising prices at the pump can have serious budget implications.”

Methodology: The study analyses fuel price data from Fuelmap.co.uk and weekly wage data from the Office for National Statistics (ONS) to identify which areas in the UK have the cheapest and most affordable fuel prices. Affordability is measured by calculating the percentage of average weekly income required to purchase 50 litres of petrol or diesel. Areas are ranked accordingly to highlight where fuel places the least financial burden on residents. The study also includes a ranking of UK areas based solely on petrol and diesel prices, independent of income.

Sources

Fuelmap.co.uk – https://fuelmap.co.uk/

Office for National Statistics – https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2024

Study carried out by http://Chicksx.com