The RAC has reported that petrol and diesel prices are declining more slowly than anticipated, although one part of the United Kingdom has experienced faster decreases. The motoring organisation issued its latest assessment amid ongoing global instability.
Recent Fuel Price Trends
Fuel costs have surged over the past two months following military action by the United States and Israel against Iran. This led to a spike in oil prices, which pushed petrol and diesel costs higher. Subsequently, tentative ceasefire agreements caused oil prices to fall, offering hope for reductions at the pumps. However, persistent instability in the Middle East has limited the relief for motorists.
Impact of the Strait of Hormuz Dispute
A significant factor is the ongoing dispute surrounding the Strait of Hormuz, a crucial shipping route for oil and gas. Since hostilities began, very few vessels have navigated the waterway, sparking supply concerns and driving prices up. This week, as Washington and Tehran traded accusations over violations of their fragile ceasefire, oil prices climbed again.
Despite this, the RAC noted that wholesale fuel costs suggest pump prices should be lower than current levels. RAC head of policy Simon Williams stated that the organisation still expects motorists to see cheaper prices. He said: "Pump prices aren't falling at the rate that our analysis of wholesale data indicates they should, with petrol only having dropped a penny a litre since April 15 and diesel by 2p."
Regional Variations
Williams added: "Interestingly, we note that prices in Northern Ireland have reduced more quickly, as unleaded has already come down by 2p and diesel by more than 4p in the last week. The fact that the price of oil went back above $100 on Wednesday, having been below that mark for 10 days, is no doubt cause for concern for retailers. Despite this, the cost of both fuels on the wholesale market is still lower than it has been, particularly so for diesel - so drivers really ought to see some cheaper prices at the forecourts in the coming days."
The RAC continues to monitor the situation and advises motorists to shop around for the best deals as prices may vary by region.
