The cost of petrol and diesel has ceased its upward trend following 43 consecutive days of increases, according to the latest data from the motoring organization RAC.
A temporary ceasefire in the Gulf region has contributed to a reduction in crude oil prices from their recent peaks, subsequently lowering the cost of fuel on wholesale markets.
Despite this halt, prices remain significantly higher than before the conflict began. Petrol is currently averaging just over 158p per litre, a rise from 133p in late February, while diesel has climbed from 142p to 192p per litre, the RAC reported.
The motoring group anticipates that prices could begin to fall over the next couple of weeks.
The outbreak of the US-Israeli war with Iran led to the effective closure of the Strait of Hormuz, a crucial waterway responsible for transporting approximately 20% of the world’s oil and liquefied natural gas. This disruption was a primary driver behind the surge in global fuel prices.
As crude oil is a fundamental component of petrol and diesel, higher wholesale costs directly translate to more expensive fill-ups for motorists.
The recent price hikes have increased the cost of filling a family car with petrol by £14, and a tank of diesel by £27.
However, current fuel prices are still below the record levels observed in summer 2022, following Russia’s invasion of Ukraine, when petrol reached 191.5p and diesel hit 199p per litre.
Diesel prices have seen a more substantial increase than petrol due to its more complex refining process. The UK imports roughly half of its diesel supply, and global demand for the fuel remains very high.
Simon Williams, the RAC’s head of policy, stated, “Wholesale fuel costs are now significantly lower than they were at the start of the month, so forecourt prices should begin to come down.”
He added, “As things stand, we’d expect petrol and diesel to drop by several pence a litre in the next week or so.”
“It will be very interesting to see if this plays out as the data indicates. We hope it does as drivers could do with some relief at the pumps.”
Meanwhile, rival motoring group the AA suggested that the likelihood of motorists experiencing a cut in fuel prices would depend on their location, attributing this to what it termed “the pump-price postcode lottery.”
Edmund King, the AA’s president, commented, “If you live in a town with competitive retailers, you may see some movement. If you live somewhere where they all watch each other to see who budges first, you won’t.”
Historically, the motor fuels sector has faced accusations of rapidly increasing prices when oil costs rise, but only slowly reducing them when costs fall.
In late 2022, the Competition and Markets Authority (CMA) reported finding some evidence of this so-called “rocket and feather” pricing.
Since then, the CMA has regularly monitored forecourt prices and announced last month that this scrutiny would be intensified in response to surging energy costs.
A new government initiative now allows drivers across the UK to compare fuel costs offered by various petrol stations.
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