‘Tumbling’ oil prices could see petrol costs drop to lowest levels since 2021 – RAC

The price of a barrel of crude oil has been steadily falling over recent months.

By contributor Jack Evans, PA Motoring Reporter

Published 8 hours ago

Last updated 8 hours ago

Fuel prices — File photo dated 22/02/13 of a generic photo of a petrol pump at a petrol station in London, as drivers should see fuel prices fall from a six-month high because of a drop in wholesale costs, according to new analysis. The RAC said average pump prices will come down by at least 6p per litre for petrol and 3p per litre for diesel in the coming weeks if retailers “pass on the savings they are benefitting from when buying in new stock”. Issue date: Friday March 14, 2025.

The falling cost of oil could see drivers benefitting from cheaper petrol prices over the coming weeks.

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

“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 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.”

The price of Brent Crude oil fell to its lowest level since April 2021 today (Monday April 7), falling to $63.49 a barrel.

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”.