The RAC has advised UK drivers to monitor pump prices this weekend as oil prices continue to decline. Brent crude fell to around $73.94 a barrel on Friday morning, briefly dipping below pre-conflict levels seen before the Iran war. This drop has prompted renewed calls for fuel retailers to quickly pass on savings to motorists.
Petrol Could Fall Below 150p
RAC head of policy Simon Williams said: "On the back of the lowest oil price since before the Iran war started, drivers should see the average price of petrol fall below 150p in the next week or so. If this happens, unleaded will be at its lowest price since March 26." He added that diesel, which dropped below 170p for the first time since March 22, should go back under 160p. Williams urged retailers to pass on wholesale savings immediately.
According to RAC figures, average petrol prices have already fallen 7.2p a litre since peaking at 159.53p on May 28, while diesel has dropped 22.17p a litre from its April high of 191.54p. On Thursday, average forecourt prices stood at 152.32p for petrol and 169.37p for diesel.
Oil Market Reversal Eases Supply Fears
The latest falls follow a dramatic reversal in global oil markets after fears of disruption to supplies through the Strait of Hormuz began to ease. Tankers have resumed moving through the key shipping route, and traders are increasingly betting that global supplies will remain plentiful. Before the war began, oil was at $70 a barrel, translating to an average petrol price of 132p and 141p for diesel, according to the RAC.
Watchdog Monitoring for Price Gouging
The drop has sparked renewed scrutiny of fuel retailers. Consumer champion Martin Lewis warned motorists to keep an eye on pump prices, saying: "Now is the time to watch for price gouging. It normally happens when prices drop after a peak." He later added: "No accusation just saying it needs monitoring."
The Competition and Markets Authority is already carrying out enhanced monitoring of the fuel market, tracking pump prices, retailer margins and wholesale costs amid concerns motorists may not always receive the full benefit of falling oil prices. The watchdog has repeatedly examined whether reductions in wholesale fuel costs are being passed through fairly to drivers, following concerns about weak competition in parts of the market.
Rocket and Feather Effect
Motoring groups have long complained about the so-called "rocket and feather" effect, where pump prices shoot up rapidly when oil rises but drift down far more slowly when wholesale costs fall. The AA has also argued that sustained reductions in wholesale fuel and oil prices should be reflected at the pumps, particularly while households remain under pressure from the wider cost-of-living squeeze.
