UK Fuel Prices Decline for First Time Since Iran Conflict Began
Motorists in the UK saw pump prices dip slightly on Thursday, ending a long run of rises. Petrol fell to 158.1p per litre, down from 158.3p the previous day.
Immediate price changes
Diesel also edged lower, from 191.5p to 191.2p per litre. The small declines ended a 46-day streak of rising costs at the pumps.
Despite the fall, petrol and diesel remain considerably higher than before the conflict began on February 28. Petrol is about 25p per litre more expensive, and diesel about 49p higher.
Reaction from motoring groups
The RAC said drivers would welcome the easing. Its head of policy, Simon Williams, noted wholesale costs are down and further cuts may follow.
He described the change as a modest reversal after a period of record increases. The charity hopes reductions of several pence per litre will arrive in coming days.
Cost to households
The RAC Foundation estimated the spike has added roughly £1.4 billion to motorists’ bills. That figure uses average daily pump rises and last year’s fuel consumption rate.
Supply disruption and global markets
The wider pressure on prices stems from turmoil in the Middle East. Iran’s closure of the Strait of Hormuz has disrupted flows, removing about one fifth of global oil shipments.
Fears about supply tightened markets and sent oil and gas prices higher, triggering a market sell-off earlier in the week. The situation underpins the recent movements in UK fuel prices and wider energy costs.
Jet fuel and airline impacts
Fatih Birol, head of the International Energy Agency, warned Europe has roughly six weeks of jet fuel remaining. He said flight cancellations would begin soon if the strait stays closed.
easyJet reported an expected headline loss between £540 million and £560 million before tax for the six months to March. The airline also spent an extra £25 million on jet fuel in the last month.
The small decline offers motorists some relief, but costs remain far above levels seen before the Iran conflict. Filmogaz.com will continue to monitor prices and supply developments.
