Drivers may see a 4p per litre decrease in petrol prices soon, according to the AA motoring group. The drop is attributed to a decline in the wholesale fuel cost, prompting a potential reduction at fuel stations.
Recent fluctuations in oil prices, influenced by the Middle East conflict, have somewhat stabilized. The price of Brent crude saw a spike to over $98 per barrel but has since retreated from its peak near $120.
The AA reported that the wholesale petrol cost fluctuated between 59.5p and 67p per litre this week, indicating a possible 4p decrease in pump prices. Diesel costs also experienced a decline from around 102p to under 82p, although they rose back to 87p.
Despite the current increase in average pump prices to 158.0p per litre for petrol and 190.8p per litre for diesel, the AA suggests that a reduction in fuel prices may occur next week rather than this weekend.
Luke Bosdet, the AA’s pump prices spokesperson, anticipates that prices at fuel stations will likely stabilize and decrease in the following week based on industry trends. However, potential price adjustments hinge on ongoing events, with uncertainties surrounding the Middle East ceasefire.
Notably, the Strait of Hormuz remains a critical factor in global oil supply dynamics, with geopolitical tensions impacting oil markets. Financial markets exhibit cautious optimism amid concerns over the lasting effects of recent conflicts on energy prices and the broader economy.
The International Monetary Fund is expected to revise down its global economic growth forecasts due to the fallout from recent geopolitical tensions. The conflict’s repercussions have created economic uncertainties, with lasting impacts anticipated in the coming months.