Petrol and diesel drivers can expect a welcome change at the forecourts in the coming weeks as fuel prices are set to keep falling, according to RAC head of policy Simon Williams. The update comes amid ongoing concerns over the Iran war, which has impacted global oil markets.
Fuel Prices Continue to Drop
Simon Williams said: "Fuel prices continue to fall on the back of oil being under $100 for the last nine trading days. The average price of petrol has dropped nearly 2p a litre (1.6p) to 157.93p since peaking on 28 May at 159.53p."
"The diesel story is even better with the average price reducing by 11p (10.62p) to 180.92p since 15 April (191.54p), its lowest since the end of March but still 39p higher than when the war started."
Further Reductions Expected
RAC analysis of wholesale market data indicates that drivers should expect prices to keep on falling. Unleaded ought to come down by another 4p at least, while diesel should drop even further, by possibly as much as 8p.
"This is a crucial period for retailers as the Competition and Markets Authority is monitoring how quickly pump prices fall in response to lower wholesale costs," Williams added. Its latest report showed retailers hadn't altered their pricing strategies when the price of oil shot up, but it did note margins were still at historically high levels.
Impact on Households
The update for road users will be a welcome one at a time where macroeconomic factors continue to squeeze households. A full tank of petrol for a 55-litre family car currently costs £86.86, while the diesel equivalent is £99.51. These are £13.81 and £21.20 more respectively than the start of the war on 28 February.
Williams concluded: "Its latest report only covered the first two months of the war which is important as diesel peaked on the wholesale market in early to mid-April, whereas petrol hit its wholesale high in late May."
