And although prices may drop a little further, we expect the joy to be relatively short lived as the price of Brent Crude Oil has once again nudged above $100 per barrel.
This is considerably below the highs earlier in the year when it almost reached $140 per barrel, but above prices at the start of the month when it dropped to $94.
Despite it taking some time for the price of Brent Crude Oil to make its way to the forecourt – and with the price of Oil being just one factor of many that influences the price of fuel – experience of the fuel crisis tells us that the greed of retailers prevents prices falling sharply despite the wholesale prices of fuel falling.
We’ve now seen seven collective weeks of wholesale price reductions but this may change over the coming weeks when the price of Brent Crude Oil is reflected.
Some experts have said, despite our relatively hesitant take, that some prices may drop as much as 15p over the next fortnight taking us closer to the £1.50 mark – on average.
A spokesperson for the RAC said: ‘Gains triggered by the invasion of Ukraine have now been cancelled out, as rising interest rates and the subsequent cooling this is expected to have on global economies, outweigh previous questions about a lack of supply caused by the conflict.’
Luke Bosdet, AA’s fuel price spokesperson, added: ‘This is a glass half full and half empty situation for UK drivers. Yes, they are paying on average approaching 19p a litre less for petrol and saving nearly £10.30 a tank. But, the fuel is still 37.6p a litre more expensive than a year ago (135.29p).’
‘That is still at danger level for young drivers and those with families who we know, from AA research among thousands of its members, have been forced into debt or seeking financial help from friends and family. In previous pump price crashes, drivers could reckon on the supermarkets racing to pass on the savings, trying to steal a march on their rivals.’