Tumbling oil prices could see petrol costs reach lowest levels since 2021 – RAC

The falling cost of oil could see drivers benefit from cheaper petrol prices over the coming weeks, according to the RAC.

Simon Williams, the RAC’s head of policy, said drivers ought to see cuts of up to 6p a litre at the pumps ahead of a notoriously busy Easter weekend on the roads.

He predicted petrol should drop from its current UK average of 136p to 130p a litre and diesel from 143p to 137p.

“As long as the barrel carries on trading around or below the 65 dollar mark, retailers will be obliged to pass on the savings they’re benefitting from to their customers on the forecourt,” Mr Williams said.

“The RAC believes they should be motivated to do so as they continue to be scrutinised by the Competition and Markets Authority, which only a week ago reported that it’s still concerned about a lack of competition in fuel retailing.”

Brent crude

The price of Brent Crude oil fell to its lowest level since April 2021 on Monday, falling to 63.49 dollars a barrel.

The decrease has been attributed to fears of a global recession following US President Donald Trump’s tariffs, which would reduce demand.

Mr Williams added: “Petrol should drop from its current UK average of 136p to 130p a litre and diesel from 143p to 137p. If unleaded were to fall to that level, it would be the cheapest since summer 2021. Diesel hasn’t been that low since September that year.”

Last month, the Competition and Markets Authority (CMA) said it was “concerned about the intensity” of competition between fuel retailers which was seeing drivers hit by fuel price margins which “remain high compared to historic levels”.