Martin Lewis has given his verdict on when petrol and diesel prices might fall, telling viewers of his ITV show that the answer depends on political decisions and global events.
During the first episode of his new series on ITV1 and ITVX on Tuesday night, a driver in the audience asked whether the cost of fuel would go down before or after Christmas.
Fuel Duty Rise 'Unlikely'
Lewis said the question was "virtually impossible to answer," explaining that fuel is made up of two main parts: tax, which accounts for just under half the price, and the global price of crude oil.
He said a Budget is coming and that it is currently expected fuel duty will rise in January and March, but he added: "I can't see in this political environment him actually doing that. Whether he'll bring it down or not is another matter."
Diesel Gap Widens
Lewis also explained that diesel has become more expensive than petrol because the UK lacks enough diesel refineries. He referenced President Trump's comments about banning or bringing in diesel exports as part of the reason for the shortage.
He said: "So you ask me will it come down. Well, one side is political, what does the Chancellor choose to do. There's a Budget in a couple of weeks. The other side is, what's gonna happen in the Middle East. If that de-escalates, then this will start to come down."
Two-Month Lag
Lewis noted there is likely a lag of about two months before any change in global prices affects the pumps. He concluded: "If it doesn't deescalate, it stays where it is now, well, then the price will probably stay high. And that's as good as I can give you I'm afraid."
