Motoring groups claims army are missing out on a big drop in wholesale fuel costs – just as fresh oil price risk risks bringing fresh misery at the pumps
Millions of UK drivers have been denied fuel price savings – and now face the threat of more pain at the pumps, say experts.
Motoring groups claim forecourts have failed to pass on a sharp fall in the wholesale cost of fuel. A drop in oil prices last week resulted in costs coming down for retailers which, they say, should have benefited drivers.
According to the AA, wholesale petrol costs have been broadly 2p a litre lower and diesel down at least 10p since April 7. But within that time, there have been big fluctuations The latest data shows wholesale petrol prices of this morning down 4p on April 7, and diesel 20p a litre lower.
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AA spokesman Luke Bosdet said: “I think we have to be careful not to be carried away with the reductions given the volatility of the situation in the Gulf but, nearly a fortnight on from when oil and fuel commodities started to fall, we should be seeing significant cuts showing at the pump. Just before the weekend, it was a pathetic tenth of a penny cut at the pump for both petrol and diesel. Hardly a cause for celebration.”
Latest data from the RAC shows the nationwide average for unleaded petrol has eased only slightly to 157.66p a litre, from 158.31p in the middle of last week. The average is up sharply from 132.83p a litre when the Iran war erupted at the end of February.
Diesel has dropped slightly, to 190.48p a litre on average, from 191.54p last week. It averaged 142.38p a litre before the conflict.
RAC head of policy Simon Williams said: “Pump prices came down very slightly over the weekend. “Petrol has now reduced by more than half a penny (0.65p) since it peaked last Wednesday and diesel by a penny (1.06p). The RAC’s analysis of wholesale data shows that the drop ought to accelerate this week as more retailers buy in new supply at lower costs.”
And while drivers have missed out on much needed savings, there is a risk fuel could increase again given a fresh rise in oil prices. Oil has jumped to $96 a barrel on Monday on rising tensions in the Middle East. Brent crude rose by more than 5% after President Donald Trump said the US had intercepted and seized an Iran-flagged cargo ship.
Iran has re-imposed its de facto closure of the Strait of Hormuz, though data showed that more than 20 vessels carrying oil products, metals, gas and fertiliser passed through on Saturday, the busiest day for the chokepoint since March 1.
The ceasefire in the Iran war, due to run until Tuesday, was in doubt after the US seized an Iranian cargo ship and Tehran’s top military command vowed to retaliate.
Iran rejected new peace talks with the US, its state news agency reported on Sunday, hours after President Donald Trump said he was sending envoys for talks in Pakistan and would launch new strikes on Iran unless it accepts his terms.
Russ Mould, investment director at broker AJ Bell, said: “Events over the weekend have left the ceasefire between Tehran and Washington looking as fragile as ever.
“The strait was open for just a day before the US seizure of an Iranian vessel. The continuing blockade of the country’s ports over the weekend created a cloud of uncertainty over whether the next round of peace talks will go ahead and saw shipping from the region disrupted once more.
“Brent crude oil prices, which briefly dipped as low as $86 last Friday, are firmly back above $90 per barrel. Though they stopped short of the $100 mark which rings alarm bells for the global economy.”
