Fuel prices stop rising after 43 days of increases, RAC says
Fuel Prices Pause After 43 Days of Increases, RAC Reports
According to the motoring organization RAC, the upward trend in petrol and diesel prices has halted after a 43-day stretch of hikes. This pause comes as the Gulf conflict has eased, leading to a decline in crude oil costs from their recent high points. Despite this, fuel prices remain elevated compared to pre-war levels.
Currently, petrol averages just over 158p per litre, up from 133p in late February. Diesel stands at 192p, having climbed from 142p during the same period, the RAC noted. The group anticipates a gradual reduction in prices over the coming weeks, offering drivers potential relief at the pump.
Impact of the Gulf Ceasefire
The recent suspension of hostilities in the Gulf has eased pressure on global oil markets, reducing the cost of crude oil. This drop has indirectly lowered wholesale fuel prices, though they are still notably higher than before the war began. The Strait of Hormuz, a critical maritime route for 20% of the world’s oil and LNG, was briefly closed during the conflict, driving prices up.
Historical Context and Market Dynamics
Crude oil, the primary component of petrol and diesel, directly influences fuel costs. Higher wholesale prices translate to more expensive fuel at the pump. In summer 2022, during the aftermath of Russia’s invasion of Ukraine, petrol reached 191.5p and diesel hit 199p per litre. Diesel prices have surged more than petrol due to its higher refining complexity.
The UK relies heavily on imported fuel, with about half of its consumption coming from abroad. Global demand for energy has remained robust, contributing to sustained price levels.
“Wholesale fuel costs have decreased substantially from the beginning of the month, so forecourt prices should start to decline,” stated Simon Williams, RAC’s head of policy. “We anticipate a drop of several pence per litre within the next week or two,” he added.
Regional Price Variations
Rival group the AA highlighted that fuel price reductions may vary by region, describing it as a “pump-price postcode lottery.” Edmund King, the AA’s president, explained, “In areas with competitive retailers, drivers might notice some movement. But in regions where stations closely monitor each other, prices may stay stable.”
Historically, the motor fuels sector has been criticized for swiftly raising prices during oil surges but slowly lowering them when costs fall. Late 2022 saw the Competition and Markets Authority identify “rocket and feather” pricing practices. Since then, the CMA has intensified its monitoring of fuel prices amid rising energy costs.
Government Support for Price Comparison
A new initiative by the UK government enables drivers to evaluate fuel prices across different petrol stations nationwide. This tool aims to increase transparency and help consumers make informed choices during periods of fluctuating costs.
