Are fuel price drops on the horizon as oil prices fall?

Fuel prices have stabilised and reductions could be on the horizon, the RAC says, after six weeks of conflict in the Middle East drove prices up at record levels.

In March, fuel prices in the UK rose by record amounts, in the cases of both diesel and petrol, for a single month. Additionally, 43 successive days of fuel price rises have broken the records in the UK for the number of consecutive days where the average fuel price has increased, again both for petrol and diesel.

However, since the end of last week prices have stabilised somewhat thanks to wholesale oil prices falling back under $100 per barrel as hopes of an end to the conflict – which began on 28 February – grew. 

As a result, there could be marginal declines in at-the-pump fuel prices on the horizon, although the RAC warns that the market remains volatile.

“While pump prices have technically risen for a record 43 straight days, the increases have almost ground to a halt,” said RAC head of policy Simon Williams.

“The average price of petrol now stands at 158.27p, only having gone up a quarter of a penny since reaching 158.03p on Thursday. 

“Similarly, diesel is now at an average of 191.5p, having first climbed to 191.11p on Thursday too.”

He added: “With dated Brent crude under $100 a barrel for the last three trading days, there's now scope to see prices finally starting to go the other way. 

“But, as always, it's a highly volatile situation with much depending on what happens with the Strait of Hormuz. 

“And, if the oil price was to go back up again this week, any hopes of slight forecourt reductions will inevitably disappear.”

Wholesale prices continued to fall slightly on Tuesday morning as US president Donald Trump again insisted that Iran is after a deal to end the war after the US’s blockade of the Strait of Hormuz began.

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