Drivers are anticipated to benefit from a 4p per litre decrease in petrol prices, according to the AA motoring group. The reduction is attributed to a decline in the wholesale fuel pricing, prompting potential savings at the pump.
Heightened oil prices resulting from Middle East tensions have somewhat stabilized, with Brent crude peaking at over $98 per barrel recently, still notably lower than past highs nearing $120. The wholesale petrol cost fluctuated from around 67p per litre earlier in the week, dropping to 59.5p before rebounding to 63p. This price movement suggests a possible 4p reduction in pump prices. Diesel costs also experienced fluctuations, falling from 102p to below 82p and then rising to 87p by Thursday, reflecting a 15% decrease from peak levels.
Current figures show an upward trend in average pump prices, reaching 158.0p per litre for petrol and 190.8p per litre for diesel. The AA indicated that any immediate fuel price cuts are unlikely this weekend but could materialize next week. The organization’s pump prices spokesperson, Luke Bosdet, explained that consumers should expect prices to stabilize by the following weekend and potentially decrease if the ceasefire persists.
The situation remains uncertain as tensions in the Middle East persist, with recent missile attacks by Israel on Lebanon casting doubt on the ceasefire. The reopening of the vital Strait of Hormuz, crucial for global oil and gas flows, appears bleak according to market analysis experts. Financial markets are showing renewed nervousness due to ongoing conflicts despite initial optimism surrounding the US-Iran ceasefire agreement.
The lasting impact of recent disruptions and inflationary pressures from the conflict are expected to linger, potentially affecting the global economy. The International Monetary Fund is poised to revise down its global growth forecasts due to the conflict’s detrimental effects, highlighting the significant economic repercussions.
