Millions of UK motorists hoping for continued reductions in fuel prices at the pump have been left disappointed, with claims that diesel in particular should have fallen much further. Figures from motoring group the RAC show that the national average for unleaded petrol stood at 157.17p per litre on Monday, while diesel was 189.23p per litre. Both prices were barely changed from Friday, offering little relief to drivers after a weekend of flatlining costs.
Fuel Prices Stubbornly High
Forecourt prices have eased only slightly from their recent peak on April 15, with unleaded down just over 1p per litre and diesel down 2.3p per litre. However, both are considerably more expensive than before the Middle East conflict began at the end of February. Unleaded is now about 24p more expensive, while diesel has surged by almost 47p per litre.
The AA has highlighted that only 1p of a consistent 10p-per-litre drop in wholesale diesel costs heading to UK fuel stations has so far been passed on to drivers. Last week, the average pump price of diesel across the country fell from 192p to 191p per litre, a meagre reduction compared with the wholesale decline.
Wholesale Price Drops Not Reflected at Pumps
According to the AA, both petrol and diesel have recorded significant drops in the wholesale price that retailers pay since April 7. Diesel initially fell by 25p per litre before rebounding, but it continues to show a reduction of 10p to 15p per litre. While supermarkets in Northern Ireland have seen a near 4p-per-litre decline in diesel pump prices, the drop has been no more than that for the rest of the UK, the AA found.
Luke Bosdet, the AA’s spokesman on pump prices, emphasized the urgency of reducing diesel costs. “Diesel is the road fuel that powers haulage, deliveries, business and much of the rural community. Delivery surcharges are often calculated against average pump prices. The need to bring down diesel pump prices as soon as possible is essential,” he said. “Petrol wholesale costs have been hostage to the ups and downs of ceasefire negotiations, and a substantial reduction in pump prices doesn’t appear to be on the cards at the moment.”
Oil Prices Jump as Peace Talks Stall
The stagnant fuel prices come as oil jumped almost 3% on Monday, with peace talks between the US and Iran stalling and shipments through the Strait of Hormuz remaining limited. Brent crude rose by $3, or about 2.9%, to $108.36 a barrel, its highest level in three weeks. Hopes of reviving peace efforts receded over the weekend when US President Donald Trump stated that Iran could telephone if it wants to negotiate an end to their two-month war.
Meanwhile, Iranian Foreign Minister Abbas Araqchi shuttled to and from mediators Pakistan and Oman before flying to Russia, with the US and Iran still seemingly far apart on issues including Iran’s nuclear ambitions and passage through the Strait of Hormuz. Tehran has largely closed the Strait of Hormuz, while Washington has imposed a blockade of Iran’s ports. Traffic through the waterway remained limited, with only one oil products tanker entering the Gulf on Sunday, according to Kpler shipping data.
Russ Mould, investment director at broker AJ Bell, commented: “Brent has now risen by 25% over the past 10 days, illustrating a significant shift in market thinking towards the Middle East crisis. Oil had dropped quickly on April 17 amid hopes of a resolution to the war, but that weakness proved to be a short-lived blip.”
