Fuel Price Rises Halt After 43 Days, Potential Reductions Ahead

The upward trend in petrol and diesel prices has ceased, according to the latest figures from the RAC. This halt follows 43 days of continuous increases, offering a glimmer of hope for motorists across the UK.

Wholesale Costs Decline

A temporary ceasefire in the Gulf region has led to a reduction in crude oil prices, subsequently lowering the cost of fuel on wholesale markets. Despite this, prices remain substantially higher than pre-conflict levels.

Currently, the average price for petrol stands at just over 158p per litre, a significant rise from 133p in late February. Diesel, meanwhile, has climbed from 142p to 192p per litre. The RAC indicates that forecourt prices could begin to decline over the next fortnight.

Impact on Motorists

The recent surge has added approximately £14 to the cost of filling a family car with petrol and an extra £27 for diesel. Diesel's sharper increase is attributed to its more complex refining process, high global demand, and the UK's reliance on imports for around half its consumption.

Simon Williams, 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. As things stand, we'd expect petrol and diesel to drop by several pence a litre in the next week or so."

Scrutiny of Pricing Practices

The motor fuels sector has previously faced accusations of 'rocket and feather' pricing – rapid increases when oil costs rise but slow reductions when they fall. The Competition and Markets Authority (CMA) identified evidence of this in late 2022 and has since intensified its monitoring of forecourt prices in response to surging energy costs, hoping to ensure fair pricing for consumers.