UK drivers are being urged to monitor fuel prices this weekend as the RAC forecasts further drops at the pump following a sharp decline in global oil costs. Brent crude fell to around $74 a barrel on Friday morning, briefly dipping below pre-Middle East conflict levels, prompting renewed calls for retailers to pass on savings quickly.
Oil Price Decline and Pump Price Forecast
Brent crude was trading at approximately $73.94 a barrel early Friday, down sharply from highs above $100 during the conflict and on track for a significant weekly loss as supply disruption fears ease. 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."
Diesel, which dropped below 170p on Friday for the first time since March 22, is expected to go under 160p. Williams added: "We urge retailers to pass on the savings they're benefiting from on the wholesale market to drivers straightaway."
Recent Price Reductions and Wholesale Trends
According to RAC data, average petrol prices have already fallen by 7.2p per litre since a peak of 159.53p on 28 May, while diesel has dropped by 22.17p per litre from its April high of 191.54p. On Thursday, average forecourt prices stood at 152.32p for petrol and 169.37p for diesel. The decline follows a turnaround in global oil markets as tankers resume passage through the Strait of Hormuz, boosting confidence in abundant supplies.
Watchdog Scrutiny and Consumer Warnings
The Competition and Markets Authority is conducting enhanced monitoring of the fuel market, tracking pump prices, retailer margins and wholesale costs amid concerns that motorists may not receive full benefit of falling oil prices. Consumer champion Martin Lewis urged motorists to watch for price gouging: "Now is the time to watch for price gouging. It normally happens when prices drop after a peak." The RAC and AA have raised concerns about the "rocket and feather" effect, where prices rise quickly but fall slowly.
