Millions of drivers in the UK are reported to have missed out on potential fuel cost savings, with experts warning of possible further increases in fuel prices. Motoring groups have criticized fuel stations for not passing on the recent drop in wholesale fuel prices following a decrease in oil prices last week. According to the AA, wholesale petrol prices have been around 2p per liter lower and diesel at least 10p lower since April 7. However, there have been notable fluctuations during this period, with the most recent data showing a 4p decrease in wholesale petrol prices and a 20p decrease in diesel prices.
Luke Bosdet, a spokesperson for the AA, expressed caution regarding the price reductions, highlighting the volatility in the Gulf region. Despite the recent drop in oil and fuel prices, Bosdet noted that the reductions at the pump have not been significant enough. The RAC’s latest data reveals that the average price of unleaded petrol has slightly decreased to 157.66p per liter, while diesel has also seen a marginal drop to an average of 190.48p per liter.
Simon Williams, the head of policy at RAC, mentioned that pump prices have slightly decreased, with petrol dropping by 0.65p and diesel by 1.06p. Williams suggested that the decrease should accelerate as more retailers purchase new supplies at lower costs. However, the potential for fuel price increases looms as oil prices surged to $96 a barrel due to escalating tensions in the Middle East.
The situation in the Middle East remains tense, with Iran re-imposing restrictions on the Strait of Hormuz and the US seizing an Iran-flagged cargo ship. This has cast doubts on the ceasefire in the Iran conflict. Iran has rejected new peace talks with the US, further escalating tensions in the region. The uncertainty surrounding the peace talks has contributed to disruptions in shipping and a rise in Brent crude oil prices above $90 per barrel.
Investment director Russ Mould from broker AJ Bell commented on the fragile ceasefire between Tehran and Washington, emphasizing the uncertainty surrounding future peace talks and the impact on global oil prices. The ongoing geopolitical tensions continue to create instability in the oil market, with Brent crude oil prices hovering near the $90 mark.