Drivers may soon enjoy a 4p per litre decrease in petrol prices, as per the AA motoring group. The drop is attributed to a decline in the wholesale price of fuel, prompting expectations for a price cut at the pump.
Oil prices surged due to the Middle East conflict but have since receded from their peak levels. Brent crude prices briefly rose by almost 4% to over $98 a barrel before settling lower than the recent high of nearly $120.
The wholesale petrol cost fluctuated from around 67p per litre earlier in the week to a low of 59.5p, then rebounded to 63p. Diesel prices also experienced a similar trend, dropping from 102p to below 82p, but rebounding to 87p.
Average pump prices have continued to rise, reaching 158.0p per litre for petrol and 190.8p per litre for diesel. The AA noted that while a fuel price reduction before the weekend seems unlikely, it could occur next week.
Luke Bosdet, the AA’s pump prices spokesman, indicated that drivers might see prices stabilize by the following weekend and potentially decrease if the current ceasefire holds. However, uncertainties remain due to ongoing tensions in the Middle East and doubts about the reopening of vital supply routes like the Strait of Hormuz.
Market analysts warn of persistent challenges in the global economy as a result of recent conflicts, with the International Monetary Fund expected to revise its growth forecasts downwards due to the impact of the conflict on various sectors.