Key Points
- Residents in Tower Hamlets spend just 5.39% of their weekly income on a full tank of petrol, the lowest percentage in the UK.
- The analysis was conducted by Chicksx.com, which compared fuel prices and income data across all UK local authorities.
- Tower Hamlets has an average weekly income of £1,243, one of the highest in the country, which significantly reduces the relative burden of fuel costs.
- A full 50-litre tank of petrol in Tower Hamlets costs £66.98, with an average petrol price of £1.34 per litre.
- Southwark ranked second with 7.06% of weekly income spent on fuel, followed by Camden, Islington, and Lambeth.
- London dominates the top ten most affordable areas for fuel relative to income, with six boroughs featured.
- Merthyr Tydfil in Wales is the least affordable, where residents spend 11.85% of their weekly income on petrol.
- Raw fuel prices are not the lowest in London; affordability is driven by higher incomes rather than cheaper petrol.
- Areas with lower average incomes, such as Pendle £575 weekly, face significantly higher relative fuel burdens despite lower nominal prices.
- The data highlights a national disparity in fuel affordability, with economic prosperity playing a greater role than geographic location.
Why is Tower Hamlets the most affordable place for fuel in the UK?
As reported by Tim Sandle of Digital Journal, Tower Hamlets has emerged as the most affordable location in the UK for filling a car with petrol when measured against weekly income. Residents in the East London borough spend just 5.39% of their average weekly earnings—£1,243—on a full 50-litre tank of petrol, which costs £66.98. This finding comes from a comprehensive analysis conducted by Chicksx.com, which evaluated fuel affordability across all local authorities in the United Kingdom.
The study did not focus solely on raw fuel prices but instead calculated the proportion of income required to fill a standard tank, offering a more accurate reflection of financial strain on households. While Tower Hamlets does not have the cheapest petrol per litre—averaging £1.34—it benefits from one of the highest average incomes in the country, making fuel costs relatively manageable.
How does London compare to the rest of the UK in fuel affordability?
London dominates the rankings for fuel affordability relative to income, with six boroughs appearing in the top ten. Southwark ranks second, where residents spend 7.06% of their £934 weekly income on a £65.97 tank of petrol. Camden follows in third place at 7.14%, with Islington and Lambeth tied at the same percentage, spending £67.95 and £67.44 respectively.
Westminster, Newham, and Hackney also feature in the top eight, with residents spending between 7.37% and 7.48% of their weekly income on fuel. These figures contrast sharply with areas outside the capital, where lower average incomes make fuel costs disproportionately burdensome despite sometimes cheaper per-litre prices.
Which areas face the highest fuel costs relative to income?
At the opposite end of the spectrum, Merthyr Tydfil in Wales is the least affordable place for fuel in the UK. Residents there spend 11.85% of their £590 weekly income on a £69.93 tank of petrol. This is more than double the percentage spent by residents in Tower Hamlets.
Oadby and Wigston in Leicestershire rank second least affordable, with 11.74% of income going towards fuel, while Bolsover in Derbyshire follows closely at 11.73%. Pendle, with the lowest average weekly income in the study at £575, sees residents spending 11.54% of their earnings on petrol, underscoring how economic disadvantage amplifies the impact of fuel costs.
Are raw fuel prices cheaper in London?
Despite its top ranking for affordability, London does not have the cheapest raw fuel prices. Dundee City offers the UK’s lowest petrol price at £1.26 per litre, while Ashfield in Nottinghamshire has the cheapest diesel at £1.33 per litre. In contrast, petrol in Tower Hamlets averages £1.34 per litre, slightly above the national mean.
However, real-time data from fuel tracking platforms such as CheckFuelPrices.co.uk show variation within the borough, with some stations like Asda in Poplar offering petrol at 132.9p per litre—below the UK average of 135.0p. This indicates that while prices are competitive, it is the high income levels that primarily drive affordability.
What does this mean for household budgets across the UK?
The Chicksx.com study reveals a stark regional and economic divide in fuel affordability. As noted by the analysis, areas with lower average incomes face significantly greater financial pressure from fuel costs, even when nominal prices are lower. This suggests that transport affordability is less about geography and more about local economic conditions.
For policymakers, the data raises questions about regional economic equity and the cost of living outside major urban centres. While Londoners benefit from higher wages—partly due to the concentration of high-paying jobs in finance, technology, and professional services—residents in post-industrial towns and rural areas struggle with both lower incomes and relatively high transport costs.
What are the implications for future transport and energy policy?
The findings come at a time when the UK government is accelerating its transition to electric vehicles EVs, with a ban on new petrol and diesel cars set for 2030. However, the affordability gap highlighted by the study suggests that such policies may disproportionately affect lower-income households, who are less likely to afford EVs or have access to home charging.
Local authorities like Tower Hamlets may be better positioned to adapt to this shift, given higher disposable incomes and greater access to public and private charging infrastructure. In contrast, areas like Merthyr Tydfil and Pendle may require targeted investment to ensure a just transition to low-carbon transport.
In conclusion, while Tower Hamlets leads the UK in fuel affordability, the underlying reasons point to broader socioeconomic disparities that extend far beyond the petrol pump.
