A recent study conducted by Chicksx.com sheds new light on the varying impact of fuel costs on UK households, revealing that residents of the London borough Tower Hamlets spend the smallest proportion of their income on fuel compared to anywhere else in the country. This analysis examined fuel prices in conjunction with average weekly incomes across various regions, underscoring how affordability is shaped not just by pump prices but by the interplay of local earnings.

Despite not boasting the cheapest raw petrol prices, Tower Hamlets benefits from a relatively high average weekly income of £1,243. This financial advantage means that the cost of filling a full 50-litre petrol tank, which averages £66.98 there, accounts for only 5.39% of weekly earnings—the lowest share nationwide. Following Tower Hamlets, Southwark, Camden, Islington, and Lambeth also rank as the most fuel-affordable areas, with residents spending between 7.06% and 7.34% of their weekly income on a full tank. These boroughs share a common trait: while their fuel prices are not the cheapest, their residents’ higher incomes mitigate the cost burden.

In contrast, regions such as Merthyr Tydfil in Wales represent the opposite end of the spectrum. Residents here spend an average of 11.85% of their weekly income, which is about £590, on fuel priced around £69.93 for a 50-litre tank—more than double the proportion paid in Tower Hamlets. Other closely affected areas include Oadby and Wigston in Leicestershire and Bolsover in Derbyshire, where fuel costs consume nearly 12% of weekly income. The study highlights that households in areas with lower average earnings shoulder a disproportionately heavy fuel cost burden. For example, Pendle, which features the lowest average weekly income in the analysis at £575, sees residents spending 11.54% of their earnings on petrol.

The research also identified locales offering the lowest raw fuel prices regardless of income levels. Dundee City provides the cheapest petrol at £1.26 per litre, while Ashfield in Nottinghamshire has the lowest diesel prices at £1.33 per litre. These findings suggest that geography plays a role in the baseline fuel price but that affordability ultimately hinges on purchasing power.

Within London, further price disparities are evident. An exploration of petrol prices across the capital’s 32 boroughs reveals that South London areas like Croydon, Merton, and Sutton offer some of the cheapest fuel, with petrol prices averaging around 150.7p per litre. Meanwhile, wealthier and more central locations such as Westminster face higher prices—up to 172.9p per litre for petrol. These variations reflect broader economic divisions within London and underscore the complexity of assessing fuel affordability based solely on price data.

For drivers looking to economise, several tools and resources provide valuable assistance. Apps like PumpWatch track thousands of UK petrol stations in real time, offering updates on the cheapest fuel prices across cities and towns. Websites such as Petrol Map and the UK Fuel Station Price List by the Walking Club compile extensive databases of current fuel costs, enabling motorists to pinpoint cost-effective filling stations nearby. Additionally, local guides highlight specific stations offering lower-than-average rates, such as Texaco Albert Embankment in Central London, which has recently been noted for competitive pricing.

Together, these efforts underscore a key takeaway from the study: while raw fuel prices fluctuate across regions, the critical factor in fuel affordability is how these prices relate to local incomes. Policymakers and consumers alike must consider this dynamic to fully understand and address the challenges faced by motorists in different parts of the UK.

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Source: Noah Wire Services