Petrol and diesel prices could drop to their lowest in three-and-a-half years

Motorists across the UK could be set to enjoy significantly cheaper fuel prices ahead of the busy Easter weekend, following a sharp drop in oil prices triggered by newly announced import tariffs in the United States. According to the RAC, drivers should anticipate savings of up to 6p a litre at the pumps.

The dramatic fall in oil prices, which have now reached a four-year low, has prompted calls for retailers to pass on the savings to consumers. RAC head of policy, Simon Williams, stated, “With oil tumbling to its lowest price for four years, drivers ought to see cuts of up to 6p a litre at the pumps ahead of the notoriously busy Easter weekend on the roads.”

The price of Brent Crude has been fluctuating around or below the $65 per barrel mark, creating an opportunity for retailers to lower their prices. Williams emphasised, “As long as the barrel carries on trading around or below the $65 mark, retailers will be obliged to pass on the savings they’re benefitting from to their customers on the forecourt. The RAC believes they should be motivated to do so as they continue to be scrutinised by the Competition and Markets Authority, which only a week ago reported that it’s still concerned about a lack of competition in fuel retailing.”

The Competition and Markets Authority (CMA) recently highlighted ongoing concerns about the competitive landscape of fuel retailing, placing additional pressure on retailers to ensure fair pricing. This scrutiny adds weight to the RAC’s demand for immediate price reductions.

Currently, the UK average price for petrol stands at 136p per litre, while diesel is averaging 143p. Williams predicts substantial reductions, stating, “Petrol should drop from its current UK average of 136p to 130p a litre and diesel from 143p to 137p. If unleaded were to fall to that level, it would be the cheapest since summer 2021. Diesel hasn’t been that low since September that year.”

These potential price drops would provide much-needed relief for drivers planning Easter travel, reducing the financial burden of long journeys during a traditionally high-traffic period. Retailers are now under increasing pressure to act swiftly and implement these price reductions, ensuring that consumers benefit from the current market conditions.