The cost of fuel could fall again in April as an increase US oil production threatens to bring oil prices down, according to the RAC.
Last month saw pump prices stabilise in the UK, with petrol and diesel prices both rising by less than one-tenth of a penny despite a five percent increase in the price of oil. As a result, the average litre of petrol now costs 120.1p, while a litre of diesel now comes in at 122.9p.
However, the RAC is hopeful that global economic conditions could cause a drop in the value of oil. Citing trade issues between China and the US and increased American oil production, the organisation’s fuel spokesman, Simon Williams, said there was ‘hope’ that prices would fall.
‘It’s good to see fuel prices haven’t gone up as a result of the increased cost of a barrel of oil, which gained $4 (£2.82) in the second half of March,’ he said. ‘Retailers have clearly absorbed some of this cost which is good news for motorists who had seen prices rise for three consecutive months from November to January.
‘Looking ahead, there is a glimmer of hope that motorists may be about to benefit from some cheaper forecourt prices in April. At a global level there is much going on that may lead to a drop in the oil price: the developing trade friction between the US and China, increased oil production from fracking in the US and rising oil supply despite Opec’s ongoing attempts to curb output. Each of these factors has the potential to cause the oil price to fall, which would almost certainly bring pump prices down.’