Drivers could soon see a 4p per litre drop in petrol prices, according to the AA motoring group. The decrease is attributed to a decline in the wholesale fuel prices. Recent fluctuations in oil prices, influenced by the Middle East conflict, have impacted the cost of petrol and diesel. Despite a temporary surge, Brent crude prices have since stabilized at around $98 per barrel, down from their peak near $120.
The wholesale petrol cost fluctuated between 67p and 59.5p per litre this week, settling at 63p. This shift suggests a potential 4p reduction in pump prices. Diesel costs also experienced a decline from 102p to below 82p before rising back to 87p. However, this still represents a 15% decrease from the peak prices.
Current data shows an increase in average pump prices, reaching 158.0p per litre for petrol and 190.8p per litre for diesel. The AA anticipates that any price cuts may not occur this weekend but could happen next week. Luke Bosdet, the AA’s pump prices spokesperson, expects prices to stabilize and decrease in the following week if the current ceasefire in the Middle East holds.
Ongoing events in the region, including missile attacks by Israel on Lebanon, are contributing to market uncertainties. The situation is further complicated by the Strait of Hormuz’s status, a critical route for global oil and gas transportation. Analysts suggest that the conflict’s impact on infrastructure and inflation could have lasting effects on the economy.
The International Monetary Fund is considering revising down its global economic growth forecasts due to the fallout from the conflict. Kristalina Georgieva, the IMF managing director, highlighted the conflict’s negative impact on global growth projections.
