Millions of drivers in the UK are being deprived of potential fuel cost savings, leading to concerns of further price increases at gas stations, experts warn.
Industry groups allege that fuel retailers have not passed on the significant drop in wholesale fuel prices following a recent decline in oil prices. The AA reports that wholesale petrol prices have decreased by around 2p per liter and diesel by at least 10p since April 7. However, there have been notable fluctuations during this period, with the latest figures showing a 4p decrease in wholesale petrol prices and a 20p drop in diesel prices from April 7.
AA spokesperson Luke Bosdet cautioned against premature optimism due to the volatile situation in the Gulf but emphasized that consumers should have seen more substantial price cuts by now. Despite slight reductions over the weekend, the average price for unleaded petrol remains at 157.66p per liter, up significantly from 132.83p when the Iran conflict began in February.
Diesel prices have also slightly decreased to an average of 190.48p per liter from 191.54p last week, compared to 142.38p before the conflict. RAC’s head of policy, Simon Williams, expects further price drops this week as retailers acquire new supplies at lower costs.
While motorists have missed out on potential savings, there is a looming risk of fuel price hikes as oil prices surged to $96 per barrel on Monday due to heightened tensions in the Middle East. Iran’s re-imposition of its de facto closure of the Strait of Hormuz has added to the uncertainty, with conflicting reports about peace talks between Iran and the US. Oil prices, which briefly dropped to $86 last Friday, have rebounded above $90 per barrel, indicating potential economic concerns if they breach the $100 mark.
