Falling oil prices suggest a fall in fuel costs for drivers.
Petrol prices are set to fall for the first time in months, with retailers expected to pass on a drop in oil prices later in June.
Data from the RAC shows Fuel prices in May mark four months of misery for motorists, with the average litre of unleaded petrol now costing more than £1.30. The motoring organisation says the rises are the result of a weakening British currency, while the oil, which is traded in dollars, becomes more expensive.
Of late, though, the oil price has started to fall. The RAC says it is the result of America's record oil production and its ongoing trade war with China, which are sparking fears that production might outstrip demand. Whatever the cause, though, it's sent prices tumbling. A barrel of oil fell by nine percent late last month, bringing the price to a level not seen since March.
Kitty Bates, consumer spokesperson for PetrolPrices.com said the cost of fuel should fall later this month, as it would take a few weeks for the oil price drops to filter down to the forecourt.
“Oil prices have risen drastically in the past few months, but thanks to some external geopolitical factors, as of the beginning of June a barrel of oil is sitting at the $62 mark, almost $10 less than last month. This will be passed on to the motorist in the next coming weeks, and as the hotter weather arrives, families across Britain will be able to enjoy a road trip without putting a huge dent in their income.
“Wholesale prices are still on the up, as it can take up to two weeks for the oil price to transfer through the system. We should see falls at pump towards the end of the month and into the beginning of July. The changes are being driven geopolitical instances and the trade war between China and America has actually helped to lower oil prices. However, the sanctions placed on Iran by America could see much higher pump prices at the end of the year.”
However, RAC fuel spokesperson Simon Williams said oil-producing nations could still make moves to stall the price cuts.
“OPEC, the Organization of the Petroleum Exporting Countries, and its partners could still put a fly in the ointment as a meeting is scheduled in Vienna for the end of June to discuss production levels," he said. "The alliance has been working together on limiting oil production since early 2017 but increased its curbs at the beginning of this year. If they were to decide to go still further this would serve to prop up the barrel price, which inevitably won’t be good news for motorists.”