RAC tells UK motorists petrol price “best hope” amid Middle East uncertainty

The RAC has given out its advice to the UK’s motorists amid sustained uncertainty over fuel prices.

Oil prices began rising at the end of February after Iran effectively closed the Strait of Hormuz, through which around 20 per cent of the world’s oil supply typically flows. A lack of global supply resulted in global prices rising and, since oil prices are set on the global market, the result was at-the-pump price hikes for consumers.

In March, the price of petrol – and diesel – rose by record rates, outdoing the previous records set in 2022 in the early months of Russia’s invasion of Ukraine.

A recent ceasefire called between the US and Iran initially saw the benchmark Brent crude drop by 13 per cent. However, the durability ceasefire has been brought into question after only a day due to Israel’s ongoing attacks on Lebanon, which Iran believes is in violation of the terms of the ceasefire.

As a result of the ongoing uncertainty in the Middle East and the sustainment of the effective closure of the Strait of Hormuz (11 ships passed through it on 8 April, the first day after the announcement of the ceasefire, compared to the 100-plus pre-war average), oil prices – and, by extension, fuel prices – remain uncertain.

The RAC, therefore, is advising UK motorists that prices are unlikely to fall soon.

“The average price of a litre of unleaded is now at 157.71p – up 25p (19 per cent) since the war began – while diesel has exceeded the 190p mark (190.62p) and is up 48p (34 per cent) since 28 February,” said RAC head of policy Simon Williams.

“Both fuels are now at their most expensive since late 2022.

“The conditional ceasefire announcement may have taken some heat out of global oil prices, but the outlook for drivers in the UK remains highly uncertain. 

“The best hope in the short term is that pump prices stop rising at the rate they have been and hopefully top out in the coming days. 

“Much will depend on the stability of the ceasefire, whether oil shipments can move freely through the Strait of Hormuz, and the longer‑term impact on oil production across the Gulf.

“As it is a sustained lower oil price – over several weeks, not just a few days - that is required to bring wholesale fuel costs down meaningfully.

“Drivers should not expect significantly cheaper fuel in the short term, although some smaller independent forecourts buying on a 'spot’ basis may be quicker to pass on any reductions.”

The comments from the RAC have come after the PRA said that oil markets remain "volatile" despite the ceasefire agreement.

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