A new report has revealed that Spain has the cheapest motoring costs in Europe.

But British motorists might be surprised to learn that it's cheaper to fill up in the UK than in France, Germany and the Low Countries, according to the Post Office research – although Britain has seen one of the largest increases in petrol costs over the last year.

The 'Motoring on the Continent' report shows that Switzerland is now the only major European destination where unleaded petrol costs less than £1 per litre.

However, Spain, with its low car hire rates and cheap diesel fuel, costs the least overall for motoring – and its unleaded, at £1 a litre, is the cheapest in the euro-zone. Spanish diesel, at 94p a litre, is the cheapest in Europe and 26% lower than in the UK.

In the league of unleaded petrol costs, the UK stands around halfway at 116p a litre, with Germany (119p), France (124p) and the Benelux countries (128-130p) significantly dearer. Norway came out top at 140p.

The differential between unleaded petrol and diesel was most marked in the UK and Sweden, with diesel costing 13p and 16p per litre more, respectively.

The figures show unleaded petrol costs across the Continent rising substantially since 2007: 20% in Italy and the UK, but 32% in France. But taking into account the weakening of sterling, the increase in the UK is at the top of the range, with Continental countries' pricing rising less quickly.

The report showed a massive differential between European countries in car-hire costs: from £122 in Spain to £248 in Greece (three days' rental and 200 miles' fuel costs).

Turkey, one of Europe's cheapest destinations, could only achieve fifth place for holiday car hire. Although its car hire is the cheapest in Europe, high fuel costs made it more expensive than Spain, Portugal and Netherlands.