How does the ULEZ affect fuel costs in London?

The Ultra Low Emission Zone (ULEZ) covers all of Greater London and charges non-compliant vehicles up to 12.50 per day. While ULEZ doesn't directly affect fuel prices, it adds a significant daily cost for older vehicles. If your car doesn't meet ULEZ standards, the combined cost of fuel plus the daily charge makes driving in London very expensive. Most petrol cars from 2006+ and diesel cars from 2015+ are compliant.

Are petrol stations cheaper in outer London boroughs?

Yes, outer London boroughs consistently offer cheaper fuel than inner London. Stations in areas like Croydon, Bromley, Havering, and Hillingdon typically price 3-8p per litre below central and inner London stations. Supermarket stations (Asda, Tesco, Sainsbury's) in outer boroughs are usually the cheapest option, often 5-10p below branded forecourts.

Is it cheaper to fill up on the M25 or inside London?

M25 motorway service stations are among the most expensive places to buy fuel in the UK, often charging 15-20p per litre above nearby retail stations. If you're driving the M25, exit at any junction and drive a few minutes to a supermarket or suburban forecourt — the savings are significant. The exception is if you're already in outer London suburbs near an M25 junction, where local stations are competitively priced.

Fuel Prices in London: Borough-by-Borough Guide

Fuelling up in London is among the most expensive in the UK, but prices vary significantly between boroughs. Add the ULEZ daily charge, the congestion charge for central London, and premium motorway service station pricing on the M25, and the total cost of driving in the capital can be daunting. Knowing where to find cheaper fuel — and where to avoid — can save London drivers hundreds of pounds each year. Compare live prices across all London stations to find the cheapest fuel near you right now.

ULEZ and the Congestion Charge: Hidden Driving Costs

London's Ultra Low Emission Zone (ULEZ) now covers all 32 boroughs plus the City of London. Non-compliant vehicles face a daily charge of 12.50 on top of fuel costs. The separate Congestion Charge adds 15 per day for driving in central London between 7am and 6pm on weekdays. Together, these charges make central London driving expensive regardless of fuel prices.

For drivers with compliant vehicles, the key savings come from choosing the right station. Central London forecourts — particularly in Westminster, Kensington, and the City — charge the highest prices in the capital, often 8-15p above the national average. If you drive in central London regularly, fill up before entering the zone.

Inner vs Outer Boroughs: Where Fuel Is Cheapest

The price divide between inner and outer London is stark. Inner boroughs like Camden, Hackney, Islington, and Lambeth have fewer stations, higher rents, and less competition — all of which push prices up. The scarcity of stations in inner London means drivers have fewer alternatives and accept higher prices.

Outer boroughs are where the savings are. Croydon, Bromley, Havering, Hillingdon, and Enfield all benefit from suburban-style competition, with supermarket stations from Asda, Tesco, and Sainsbury's driving prices down. These supermarket forecourts are typically 5-10p cheaper than branded stations like Shell and BP in the same area. If your commute takes you through an outer borough, make it your regular fill-up spot.

The M25 Orbital: Avoid Motorway Services

The M25 circles Greater London and is one of Europe's busiest motorways. Its service stations — Cobham, South Mimms, Clacket Lane, and Thurrock — are among the most expensive places to buy fuel in the entire UK. Prices at M25 services can be 15-20p per litre above nearby retail stations, adding 8-10 to a single fill-up.

The solution is simple: exit at any junction and drive to a nearby supermarket or suburban station. Most M25 junctions have competitive fuel within a two-minute drive. For a detailed look at motorway pricing across the UK, see our motorway fuel prices guide.

Fuel Types Popular in London

E10 became the standard petrol grade in the UK in 2021 and is the cheapest option at most London forecourts. E5 (Super Unleaded) remains available for older or performance vehicles at a 10-15p premium. Diesel demand has been declining in London due to ULEZ and environmental concerns, but it's still widely available. Read our fuel types explained guide to check which fuel your car needs.

Tips for Saving on Fuel in London

Fill up in outer boroughs, especially at supermarket forecourts. Avoid M25 service stations — exit and find a local station instead. Fill up before entering the congestion zone. Use loyalty programs from Tesco Clubcard, Nectar (Sainsbury's/Esso), and Shell Go+ for ongoing savings. And for fleet or business drivers, a fuel card can unlock significant discounts.

For the broader England picture, see our England fuel prices guide. For general savings strategies, check out how to save on fuel.