In brief
Fuel prices have risen significantly due to uncertainty surrounding the US-Iran ceasefire. Although oil prices initially dropped after the announcement of the ceasefire, they have since surged again due to geopolitical tensions. Experts warn that unless the ceasefire remains stable, fuel prices may not see a major reduction in the near future. Current petrol prices average £1.58 per liter, while diesel is at £1.91, both showing increases.
The cost of petrol and diesel has continued to rise as motorists wait to see if the US-Iran ceasefire leads to cheaper prices at the pump. Oil prices had plunged initially after an agreement to pause the conflict was announced, but rose on Thursday due to concerns over whether the ceasefire would hold. The price of oil remains much higher than pre-war levels, and drivers have been warned not to expect a significant drop in costs soon. However, one motoring group has said fuel prices could start to fall over the next couple of weeks as long as the ceasefire is maintained.Doubts over the durability of the US-Iran ceasefire emerged after Israel launched a wave of strikes on Lebanon, prompting Tehran to issue a warning of a regret-inducing response. US President Donald Trump has stated that American forces will remain in the region until Iran complies with the ceasefire agreement. A significant concern is the Strait of Hormuz, a key shipping route for global oil and gas supplies. Reports indicate Iran may keep this route closed due to the Israeli strikes, heightening fears of a lengthy disruption to energy supplies that would keep fuel prices high.As pressure mounted, the price of a barrel of Brent crude rose 3.2% to $97.94 on Thursday. Since the onset of conflict on February 28, wholesale oil prices have surged by 35%. According to the UK motoring group the RAC, the average petrol price was £1.58 per litre and diesel was £1.91 per litre, both slightly higher than before. A full tank of petrol now costs £13.86 more than at the conflict's beginning, while diesel costs £26.80 more. Despite some decreases in wholesale costs, analysts stress that a significant decline in pump prices is unlikely unless geopolitical tensions ease.
