Motorists could soon see a welcome decrease at the gas pump, with prices potentially falling by as much as 6 pence per litre ahead of the Easter holiday. This anticipated drop is linked to a recent decline in global oil prices and growing concerns about a possible worldwide recession.
Wholesale fuel costs have stabilized following the price slide, suggesting drivers will benefit from reduced expenses. Experts predict unleaded petrol could decrease from an average of 136p per litre to around 130p, while diesel may fall from 143p to 137p.
According to Simon Williams, Head of Policy at the RAC, continued oil prices trading below $65 (approximately £50) will put pressure on retailers. He stated: “Retailers will be obliged to pass on the savings they’re benefitting from to their customers on the forecourt.”
Oil recently reached its lowest point since April 2021, hitting $63.49 (£49.48) per barrel, driven down by anxieties about a potential economic downturn fueled in part by announced tariffs.
The RAC emphasized that sustained low prices are likely as long as the market remains under scrutiny from the Competition and Markets Authority (CMA). They noted:
- The CMA recently expressed concerns over limited competition within the fuel retail sector.
- Fuel margins have remained historically high, impacting drivers’ costs.
To address this issue, the CMA has initiated a ‘fuel monitoring function’ and plans to launch a “Fuel Finder” scheme later this year. The scheme aims to enhance competition among retailers by enabling drivers to compare real-time fuel prices through navigation apps, in-car devices, and comparison websites.
Dan Turnbull, Senior Director of Markets at the CMA, commented on the situation: “While there are several factors contributing to the higher fuel prices seen in recent months, fuel margins remain stuck at high levels, which impacts prices paid by drivers at the pump.”
At the end of March, the average petrol price stood at 136.03p per litre – a decrease of 3.6p from the beginning of the month and a level not seen since late last year.
The RAC is hopeful that the CMA’s new oversight powers will lead to fairer prices, coupled with government initiatives requiring retailers to promptly publish price changes.
Important Note: The RAC advises drivers to avoid assuming their usual petrol station offers the lowest prices. They recommend checking average prices published on RAC Fuel Watch and actively seeking out more affordable options.
