UK pump price outlook remains uncertain despite oil price drop - RAC statement

Following the agreement of a conditional two-week ceasefire in the Middle East, RAC head of policy Simon Williams said:

“The average price of a litre of unleaded is now at 157.71p - up 25p (19%) since the war began - while diesel has exceeded the 190p mark (190.62p) and is up 48p (34%) since February 28. Both fuels are now at their most expensive since late 2022.

"The conditional ceasefire announcement may have taken some heat out of global oil prices, but the outlook for drivers in the UK remains highly uncertain. The best hope in the short term is that pump prices stop rising at the rate they have been and hopefully top out in the coming days. Much will depend on the stability of the ceasefire, whether oil shipments can move freely through the Strait of Hormuz, and the longer‑term impact on oil production across the Gulf. As it is a sustained lower oil price - over several weeks, not just a few days - that is required to bring wholesale fuel costs down meaningfully.

"Drivers should not expect significantly cheaper fuel in the short term, although some smaller independent forecourts buying on a 'spot’ basis may be quicker to pass on any reductions.

“We continue to recommend drivers shop around for fuel and make use of free apps like myRAC to ensure they always get the best price each time they fill up."