Petrol and diesel drivers across the UK are set to benefit from falling fuel prices, with new data from the RAC forecasting significant reductions in the coming days. After months of rising costs, motorists can expect petrol to drop by 6p per litre and diesel by at least 3p per litre, bringing much-needed relief to household budgets.
This welcome update comes as global oil prices have declined, offering the prospect of a reprieve for UK drivers. For many, this marks the first sign of financial relief following an extended period of rising fuel costs that has placed pressure on personal finances.
Falling Oil Prices Pave the Way for Cheaper Fuel
Petrol and diesel prices have steadily climbed since late 2022, but new data suggests these trends are about to reverse.
According to the RAC, petrol prices are expected to fall by 6p per litre from their current average of 139p, while diesel prices should drop by 3p per litre from 146p. The decline is driven by a fall in global crude oil prices, which have dropped from more than $80 per barrel in January to just under $70 per barrel this month.
Retailers are now expected to pass on these savings to consumers. Simon Williams, RAC’s head of policy, explained that with crude oil prices now hovering around the $70 per barrel mark, motorists could see further reductions if these prices remain stable.
It’s anticipated that by the end of this week, fuel prices will begin reflecting these wholesale savings at forecourts across the country.
Northern Ireland’s Fuel Price Advantage
While the price drops are expected across the UK, Northern Ireland already stands as an example of how competition among retailers can drive lower prices.
According to the Consumer Council’s Fuel Price Checker, some areas in Northern Ireland are already enjoying significantly lower prices than the national average. In Newtownabbey, for example, drivers are paying just 134.9p for diesel, while Strabane offers even lower prices, with petrol priced at 128.8p per litre.
This price disparity demonstrates the role competition plays in encouraging lower fuel prices, as the council’s tool helps monitor and rank prices in different regions.
The price variations in Northern Ireland are offering consumers a glimpse into how the fuel market can function when competitive pressures push prices lower, a model which could potentially be replicated across the UK if competition intensifies.
In recent years, the Competition and Markets Authority (CMA) has raised concerns over the pricing practices of major fuel retailers.
According to the CMA, drivers were overcharged by £900 million in 2022, with the figure rising to £1.6 billion in 2023. With the drop in wholesale prices now evident, the CMA’s next report may explore whether fuel retailers are passing on these savings fairly to consumers.
