Recent tensions in the Middle East have raised concerns about the potential impacts on oil prices, which could affect UK drivers despite recent drops in fuel costs.
The ongoing conflict has the potential to disrupt global oil supplies, potentially reversing the positive trend of falling prices at the pumps that British motorists have been enjoying.
RAC fuel spokesperson Simon Williams stated that “serious global events” of this nature often cause a spike in oil prices “which is never good for drivers in the UK, especially if it is sustained”.
However, Williams noted that recent price decreases might cushion the blow to some extent. Since May, petrol prices have fallen by 15.5p per litre, while diesel has dropped by 18.5p per litre.
Do you have a story you’d like to share? Get in touch by emailing[email protected]
Petrol and diesel prices have fallen dramatically since the start of the year
GETTY
Despite recent concerns, September saw a significant drop in fuel prices, providing some relief to UK drivers.
According to the RAC, fuel prices fell by an average of 6.5p in September, resulting in savings of £3.60 per fill-up. Petrol prices decreased to 134.79p from 141.26p at the start of the month, while diesel dropped from 146p to 139.5p.
This marks the fifth consecutive month of reduced fuel prices, with September witnessing the ninth biggest monthly price drop since 2000.
Williams noted: “Drivers will be very pleased to see prices at the pump not only continuing to fall but dropping by 6.5p in just a month as this translates to saving £3.60 on a full tank.”
The recent price drops have been primarily driven by a decrease in global oil prices, which fell from above $90 (£68) per barrel in early April to briefly below $70 (£53) in mid-September.
This decline, coupled with a slightly stronger pound, has made wholesale fuel cheaper for UK retailers.
Supermarkets are offering even lower prices, with drivers saving an average of 3p per litre compared to other retailers. Asda currently offers the lowest petrol prices at 131p per litre.
However, the upcoming Autumn Budget on October 30 may impact future fuel costs. While fuel duty has been frozen at 5p until March 2025, this measure could potentially be axed as the new Government seeks to address financial challenges.
The RAC explained that pump prices are influenced by various factors including crude oil prices, refinery production, exchange rates, and distribution costs.
Williams commented: “With analysts predicting oil may continue to fall on the back of a weakened global economy and Saudi Arabia upping its output to regain lost market share, the immediate future on the UK’s forecourts looks considerably brighter for drivers.
“We very much hope the current situation won’t bring an end to the slightly better times at the pumps drivers have been benefiting from.”
The RAC said it hopes pump prices will continue to fall over the next two weeks by as much as 4p a litre to have a real impact on drivers. Nevertheless, the volatile nature of global events and oil markets means that the situation remains uncertain for UK motorists.
LATEST DEVELOPMENTS:
Petrol and diesel drivers could see prices rise as Middle East tension grows
GETTY
Since the start of May, petrol prices have been continuously dropping with drivers now saving £8.50 on a full tank but the growing tension in the Middle East could disrupt the progress.