Martin Lewis has issued a worrying fuel price warning to motorists across the UK. Addressing his followers on social media, he urged people to be wary of 'price gouging' — a practice where companies take advantage of a situation to make excessive profits by charging very high prices for essential goods.
Lewis was referring to oil prices dropping after the temporary cessation of hostilities between Iran and the US. The benchmark price of crude oil has plunged by almost $50 a barrel since the end of the conflict, falling from highs of $110 to $73 as of today. Before the war, oil was at $67, typically trading around $60.
Why Fuel Prices May Not Drop Immediately
Despite the fall in crude oil prices, the impact at the pumps is not instant. Lewis explained that it can often take several weeks for the drops to filter through to consumers. He said: "Now is the time to watch for price gouging. It normally happens when prices drop after a peak not rise."
Gordon Balmer, executive director of the Petrol Retailers Association, noted: "There are some operators who work on a daily basis, while others buy on a weekly, fortnightly or a three-week lag." This variation in purchasing cycles means that some retailers may still be selling fuel bought at higher prices, delaying price reductions.
Recent Fuel Price Trends
According to the RAC, the average price of petrol rose by 20 per cent to 159.53 pence per litre at its peak during the conflict. Diesel hit 191.54 pence on April 25, a 19 per cent increase since the start of the conflict. Before the war, petrol averaged 132 pence a litre and diesel 141 pence.
The reopening of the Strait of Hormuz after the deal was signed is expected to allow more oil tankers to pass through the strategic waterway, which carries around 20 per cent of the world's oil. This should further stabilise supply and support lower prices.
What to Expect at the Pumps
Simon Williams, the RAC's head of policy, said: "Drivers can now expect to see the average pump price of petrol drop below 150 pence in the next week or so, while diesel should drop back under 170 pence." The AA also suggests that prices will continue to fall provided the deal holds.
Lewis emphasised the importance of vigilance: "Crude oil is today $73, from highs of $110. Immediately pre-war it was $67 but more normally around $60. So it's not quite back to where it was yet. However that means we should be seeing petrol and diesel drop soon." He warned that some retailers might not pass on the savings promptly, a classic sign of price gouging.
Advice for Motorists
Motorists are advised to shop around for the best fuel prices and report any suspected price gouging to trading standards. Lewis's warning serves as a reminder that while global oil prices are falling, local pump prices may not reflect this immediately, and consumers should be cautious of unfair pricing.
