Fuel prices stop rising after 43 days of increases, RAC says
Fuel Prices Stop Rising After 43 Days of Increases, RAC Reports
According to the latest data from the motoring group the RAC, the cost of petrol and diesel has paused its upward trend following 43 consecutive days of price hikes. This stabilization is attributed to a recent pause in the Gulf conflict, which eased the strain on crude oil markets and reduced wholesale fuel costs. Despite the decline, prices remain considerably elevated compared to pre-war levels.
At present, petrol averages just over 158p per litre, up from 133p in late February. Diesel, meanwhile, has climbed from 142p to 192p, the RAC noted. The organisation expects a gradual decrease in the coming weeks, though the exact pace remains uncertain. “Wholesale fuel costs are now significantly lower than they were at the start of the month, so forecourt prices should begin to come down,” said Simon Williams, the RAC’s head of policy. “As things stand, we’d expect petrol and diesel to drop by several pence a litre in the next week or so,” he added.
The Impact of the US-Israeli War on Oil Prices
The recent escalation of the US-Israeli conflict with Iran caused the closure of the Strait of Hormuz, a vital shipping route responsible for transporting roughly 20% of the world’s oil and liquefied natural gas. This disruption sent global fuel prices surging. However, the temporary ceasefire has since alleviated some of the pressure, leading to a moderation in crude oil costs and, consequently, a halt in fuel price increases.
Crude oil, which is essential to producing petrol and diesel, directly affects the price at the pump. Higher wholesale costs translate to more expensive fuel for consumers. The latest figures show that filling a family car with petrol now costs £14 more than it did in late February, while diesel has increased by £27. Although prices have eased, they are still below the levels seen in summer 2022, when Russia’s invasion of Ukraine drove petrol to 191.5p and diesel to 199p per litre.
Regional Variations in Fuel Costs
The AA, a competing motoring association, highlighted that price reductions may not be uniform across the UK. “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,” said Edmund King, the AA’s president. This disparity, referred to as “the pump-price postcode lottery,” suggests local market dynamics could influence whether drivers experience immediate savings.
Historically, the motor fuels industry has been criticized for rapidly raising prices during oil cost spikes but slowing down when prices fall. In late 2022, the Competition and Markets Authority (CMA) identified evidence of “rocket and feather” pricing, a practice where prices climb swiftly but decline gradually. Since then, the CMA has maintained regular price monitoring, and recently announced plans to intensify scrutiny in response to rising energy costs.
A new government initiative allows drivers to compare fuel prices across petrol stations nationwide, aiming to enhance transparency. While this tool may help consumers find better deals, the RAC and AA both emphasize that the path to lower prices depends on broader market conditions and the ongoing behavior of retailers.