Millions of drivers in the UK are missing out on potential savings on fuel prices, as experts warn of possible further increases at the pumps. Despite a significant drop in the wholesale cost of fuel following a decline in oil prices last week, motoring groups are reporting that many fuel stations have not passed on these savings to consumers.
The AA has highlighted that wholesale petrol costs have decreased by around 2p per liter and diesel has dropped by at least 10p since April 7. However, there have been fluctuations in prices, with the most recent data showing a 4p reduction in wholesale petrol prices and a 20p decrease in diesel prices since early April.
Luke Bosdet, a spokesperson for the AA, expressed concern over the slow pace of price reductions at the pumps despite the decrease in wholesale costs. The current national average for unleaded petrol stands at 157.66p per liter, slightly down from the previous week but significantly higher compared to earlier this year when the Iran war began.
Diesel prices have also seen a slight decline, now averaging 190.48p per liter, down from 191.54p last week. However, these prices remain elevated compared to pre-war levels.
Simon Williams, head of policy at the RAC, noted a marginal decrease in pump prices over the weekend but expects a more significant drop in the coming week as retailers adjust to lower wholesale costs. However, the recent rise in oil prices, reaching $96 per barrel, could potentially reverse this downward trend in fuel prices due to escalating tensions in the Middle East.
The situation in the region remains volatile, with Iran’s actions in response to recent events casting doubt on the ceasefire agreement with the US. The Strait of Hormuz, a critical shipping route for oil products, has witnessed disruptions, adding to the uncertainty surrounding future peace talks.
Investment experts, including Russ Mould from AJ Bell, caution that the fragile ceasefire and ongoing tensions could lead to further price hikes in the oil market, potentially impacting global economic stability.
