Drivers across the UK could see petrol and diesel prices fall in the coming weeks following a framework agreement between the United States and Iran aimed at ending their recent conflict.
The agreement has helped ease concerns about global oil supplies and has already contributed to a reduction in wholesale oil prices. For driver trainers, fleet operators and other road transport professionals, any sustained reduction in fuel costs will be welcome news after months of increased operating expenses.
During the conflict, global oil markets experienced significant volatility. Brent crude oil, the international benchmark used to price oil worldwide, rose from around $70 per barrel before the conflict to more than $120 at its peak.
Following news of the agreement, Brent crude has fallen to approximately $83 per barrel, raising expectations that fuel prices will continue to decline.
Industry analysts estimate that every $10 increase in the oil price typically adds around 7p per litre to petrol and diesel prices.
According to RAC data, UK petrol prices peaked at 159.53p per litre during the conflict, while diesel reached 191.54p per litre.
Recent weeks have already seen prices begin to ease:
- Petrol has fallen to an average of 156.37p per litre
- Diesel has reduced to an average of 177.89p per litre
The RAC believes that if oil remains around $85 per barrel, petrol could fall to around 148p per litre and diesel could drop below 160p per litre over the coming weeks.
Fuel remains one of the largest day-to-day operating costs for many ADIs, PDIs and rider trainers. While vehicle efficiency and route planning can help reduce expenditure, wholesale fuel prices remain largely outside instructors’ control.
Any sustained reduction in pump prices could help ease pressure on training businesses that have faced rising costs across fuel, insurance and vehicle ownership over recent years.
However, industry experts caution that fuel prices typically take around two weeks to reflect movements in wholesale oil markets, as fuel already in the supply chain works its way through to forecourts.
Sourced via: BBC News
