Fuel prices stop rising after 43 days of increases, RAC says
Petrol and Diesel Prices Stall After 43-Day Surge, Reports RAC
According to the latest data from the motoring organization RAC, the price of petrol and diesel has halted its upward trend after 43 consecutive days of growth. The temporary halt in hostilities in the Gulf has contributed to a decline in crude oil prices from their recent high, which in turn has stabilized the cost of fuel on wholesale markets.
Global Impact of Oil Trade Disruption
The conflict between the US and Iran, which triggered the closure of the Strait of Hormuz—a vital oil and LNG transport route—led to a spike in global fuel costs. This key waterway typically carries about 20% of the world’s oil and liquefied natural gas, and its disruption increased demand for alternatives, pushing prices higher.
Crude oil, a fundamental component of both petrol and diesel, drives up the cost of fuel at the pump when wholesale prices rise. Recent price hikes have resulted in a family car’s petrol cost increasing by £14, while diesel now costs £27 more per tank than it did in late February.
“Wholesale fuel costs have dropped significantly from the beginning of the month, so forecourt prices should start to decrease,” said Simon Williams, the RAC’s policy head. “We anticipate a reduction of several pence per litre in the coming week or two,” he added. “It would be interesting to observe whether this trend materializes as the data suggests. Drivers could benefit from some relief at the pumps, he hopes.”
Regional Variations in Fuel Costs
The AA highlighted that the likelihood of price reductions for drivers depends on their location, citing the ‘pump-price postcode lottery’ phenomenon. “In areas with competitive retailers, motorists might notice some changes. However, in regions where stations monitor each other closely, prices may stay steady,” said Edmund King, the AA’s president.
Previously, the motor fuels industry faced criticism for swiftly raising prices during oil surges but slowing down when prices receded. In late 2022, the Competition and Markets Authority (CMA) identified potential instances of this pricing behavior. Since then, the CMA has consistently tracked fuel prices and announced that this monitoring would be further intensified in response to the current surge in energy costs.
A recent government initiative allows drivers to compare fuel prices across all UK petrol stations. This tool aims to empower consumers by highlighting disparities and encouraging more transparent pricing practices.
