Fuel retailers are under pressure to cut pump prices after oil fell below $60 a barrel for the first time in nearly five years, amid growing hopes of a Russia-Ukraine peace deal. Brent crude dropped to $59.20 on Tuesday, its lowest since February 2021, but average petrol prices have barely budged, easing from 137.5p to 137.3p per litre since the start of December.
Diesel also remains stubbornly high, falling just 0.3p to 146.6p per litre over the same period. The AA's spokesperson on pump prices, Luke Bosdet, said forecourts were “creating misery for drivers and businesses”, with some raising prices as recently as last weekend despite the steady fall in the oil market. “Essentially, average pump prices for the first half of December have been stuck on a plateau when they could have fallen,” he added.
Oil prices began sliding last month as traders assessed a potential end to the Russia-Ukraine conflict, with the possibility that sanctions on Russian oil and gas exports might be eased. The fall should have translated to a drop of 7p per litre by the end of last week, according to AA analysis, which would save motorists filling a typical 55-litre tank more than £4.60 if passed on at the pump with VAT added.
Donald Trump said earlier this week that a deal to end the war was “closer now than we have ever been”, while Ukrainian President Volodymyr Zelenskyy said proposals negotiated with US officials could be completed within days. Analysts suggest that a ceasefire could release a significant volume of Russian oil currently stored at sea, estimated at almost 170 million barrels, back into the global market, potentially lowering costs further.
