Fuel prices stop rising after 43 days of increases, RAC says
Fuel Price Hike Halts After 43 Days, RAC Reports
The RAC has reported that the cost of petrol and diesel has ceased its recent upward trajectory after a prolonged 43-day rise. A brief respite in the Gulf conflict has contributed to a drop in crude oil prices from their recent peaks, which has subsequently eased the burden on wholesale fuel markets. However, the current prices remain considerably higher than those seen before the conflict began.
Petrol now averages just over 158p per litre, up from 133p in late February. Diesel has surged from 142p to 192p per litre, according to the motoring group. The RAC suggests that a gradual decline in prices might emerge in the next couple of weeks, offering some relief to drivers.
“Wholesale fuel costs have now dropped considerably from their initial levels of the month, suggesting that prices at the pump may start to decline,” said Simon Williams, RAC’s head of policy.
The conflict between the US and Iran, which temporarily blocked the Strait of Hormuz—a crucial route for 20% of global oil and LNG shipments—led to a sharp spike in fuel costs. This critical waterway’s disruption has been a major factor in the price increases, as oil prices soared due to supply concerns.
Crude oil is a primary component in both petrol and diesel, so rising wholesale costs have directly impacted the cost of filling up vehicles. Recent price hikes have added £14 to petrol and £27 to diesel for a standard family car. Nevertheless, these figures still lag behind the summer 2022 peak, when petrol reached 191.5p and diesel topped 199p per litre.
Diesel prices have outpaced petrol due to its more intricate refining process. The UK’s reliance on imported fuel, with approximately half of its needs sourced abroad, has compounded the effect of global demand on prices.
“If you reside in an area with competitive fuel retailers, you might notice some price reductions. However, in regions where stations closely monitor each other’s pricing strategies, drivers could be left without immediate relief,” explained Edmund King, president of the AA.
Historically, the motor fuels sector has been criticized for swiftly increasing prices during oil cost rises but taking longer to reduce them when costs fall. The Competition and Markets Authority flagged this pattern in late 2022, citing evidence of “rocket and feather” pricing. Since then, the CMA has maintained regular oversight of forecourt prices, intensifying checks in response to surging energy costs. A new government initiative now allows drivers to compare fuel prices across all UK petrol stations.
