Fuel prices stop rising after 43 days of increases, RAC says
Fuel prices stop rising after 43 days of increases, RAC says
According to the latest data from the motoring group the RAC, petrol and diesel prices have paused their upward movement after a 43-day streak of hikes. This temporary stabilization follows a Gulf conflict ceasefire, which reduced crude oil costs from their recent highs. Despite this, prices remain considerably higher than pre-war levels. The RAC reports petrol now averages just over 158p per litre, up from 133p in late February, while diesel has climbed from 142p to 192p. The organization anticipates a decline in the coming weeks, with potential reductions of several pence per litre.
The recent conflict between the US and Iran, which disrupted the Strait of Hormuz—a vital route for 20% of global oil and LNG—caused a surge in fuel costs. The closure of this waterway significantly impacted oil supply, driving up prices. Crude oil, a foundational component of petrol and diesel, directly affects wholesale fuel costs. As a result, the average cost for a family car’s petrol tank has increased by £14, and diesel by £27 since late 2022.
Regional Variations in Fuel Costs
The AA highlights that price reductions may vary by location, creating a “pump-price postcode lottery.” President Edmund King explains, “Motorists in areas with competitive retailers might see some movement, but those in regions where stations monitor each other closely could see little change.” This disparity underscores the influence of local market dynamics on final fuel prices.
“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. “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.”
Crude oil’s role in fuel pricing is central, as higher wholesale costs translate to more expensive pump prices. Diesel’s steeper rise compared to petrol is attributed to its more complex refining process. With the UK relying on foreign imports for roughly half its fuel needs, global demand continues to exert pressure on prices.
The Competition and Markets Authority has previously identified “rocket and feather” pricing behaviors, where fuel costs spike rapidly with oil price hikes but fall slowly when prices decline. Recent monitoring efforts have been intensified due to surging energy costs. A new government initiative now enables drivers to compare fuel prices across the UK, offering transparency in the market.
