Petrol and diesel prices are declining more slowly than anticipated, the RAC announced on Friday, though one region of the UK has experienced faster reductions. The motoring organisation has released its latest assessment of the situation against the backdrop of an increasingly volatile global climate.
Fuel prices have surged over the past two months following US and Israeli strikes on Iran, which sent oil prices soaring and dragged petrol and diesel costs up with them.
Since then, tentative ceasefire agreements had caused oil prices to fall, raising hopes of relief at the pumps for hard-pressed motorists. However, the continuing instability across the Middle East has meant little respite so far.
Much of the problem stems from the ongoing dispute over the Strait of Hormuz, a vital shipping lane serving the Gulf. Very few vessels have navigated the passage since hostilities began, fuelling supply concerns and driving prices higher.
This week, with the US and Iran trading accusations of ceasefire violations, oil prices have climbed once more. Nevertheless, the RAC noted that wholesale fuel costs suggest pump prices ought to be lower than they currently stand.
RAC head of policy Simon Williams said it still expected drivers to see “cheaper” prices.
He said: “Pump prices aren’t falling at the rate that our analysis of wholesale data indicates they should, with petrol only having dropped a penny a litre since April 15 and diesel by 2p.
“Interestingly, we note that prices in Northern Ireland have reduced more quickly, as unleaded has already come down by 2p and diesel by more than 4p in the last week.
“The fact that the price of oil went back above $100 on Wednesday, having been below that mark for 10 days, is no doubt cause for concern for retailers.
“Despite this, the cost of both fuels on the wholesale market is still lower than it has been, particularly so for diesel – so drivers really ought to see some cheaper prices at the forecourts in the coming days.”