Fuel prices at Britain’s pumps have fallen for the first time since the start of the conflict between the US and Iran, providing some relief to families struggling with a record-breaking cost-of-living crisis.
According to RAC, petrol and diesel prices started falling on Thursday and Friday after a period of extreme volatility.
The change comes as wholesale costs have retreated from recent peaks, largely due to the temporary ceasefire announced earlier this month. Diesel fell 0.6p to less than 191p a litre, while petrol fell 0.3 to around 157 a litre.
Prices had previously skyrocketed due to the six-week closure of the Strait of Hormuz, a vital sea corridor. This caused Brent crude to rise from $70 per barrel to a peak of more than $119 in mid-March.
Since then oil has fallen below the $100 mark. “We expect further cuts of several pence per liter in the coming days,” said Simon Williams, RAC head of policy.
“After record price increases, drivers will be relieved to finally see prices going in the other direction.”
Despite the slight decline, refueling a car is still significantly more expensive than at the beginning of the year. A full tank of diesel is currently £26 more than at the end of February, while petrol is £14 more expensive.
Data from the Office for National Statistics (ONS) highlights a sharp rise in public anxiety. In line with the current situation, 75% of people now cite fuel prices as the primary reason for the rise in cost of living, up from only 38% in February.
Work Foundation experts warn that stagnant wage growth has left low-income and vulnerable workers with little cushion against these global economic shocks.
RAC expects further price cuts in the coming weeks, provided wholesale markets remain stable.
Historically, every $10 movement in the price of crude has resulted in a change of around 7p at the pump, which suggests that if oil remains below $100, the downward trend will continue for UK motorists.
