Global oil prices have taken a big hit, and it could mean cheaper fuel for UK drivers in the next few days – just in time for Easter.
The drop has been triggered by fears of a global recession, sparked by new trade tariffs introduced by US President Trump. Oil is now trading at around $65 a barrel, and the RAC reckons petrol prices could fall from 136p to around 130p per litre soon.
And it might not stop there. Analysts say slowing global demand could push prices even lower. In fact, US oil prices (known as West Texas Intermediate) briefly dropped below $60 today, and Brent Crude – the global benchmark – is down to $63.
Normally when oil prices fall, producers cut back to stop them dropping too far. But last week, OPEC – the group of oil-producing nations – surprised everyone by going ahead with plans to increase production instead. Some think it’s a political move, helping the US benefit from cheaper fuel. Either way, the move could keep prices falling.
Experts at Citi think Brent Crude could hover around $60 a barrel for the next three months. Others are even more bearish – Danske Bank said there’s “effectively means there is no longer anybody around to catch a falling oil price”, and a full-blown trade war could push oil well below $60.
So what does that mean for us?
Simon Williams from the RAC says drivers could see a drop of up to 6p a litre in petrol prices just before Easter – one of the busiest times on UK roads.
He said, “With oil tumbling to its lowest price for four years, drivers ought to see cuts of up to 6p a litre at the pumps ahead of the Easter weekend, when the roads are notoriously busy.
"As long as the barrel carries on trading around or below the $65 mark, retailers will be obliged to pass on the savings they’re benefitting from to their customers on the forecourt,”
The UK’s fuel market is also under pressure from the Competition and Markets Authority, which means suppliers are being watched more closely – and that could help keep pump prices fair.
If predictions are right, petrol could fall to 130p and diesel to 137p a litre. That would make it the cheapest unleaded since summer 2021, and the lowest diesel has been since September of that year.
So, if you’re planning an Easter getaway, there’s a good chance you’ll be paying less at the pump.
