UK petrol prices ‘fall’ but drivers told ‘£2 litre’ still on table | Personal Finance | Finance
Petrol prices at the pump are edging downwards despite the ongoing Iran conflict – yet experts are sounding the alarm: “Do not be fooled by a slight reprieve in fuel costs.” The average price of petrol currently stands at 156.82p per litre, falling from a high of 158.17p on April 13.
Despite the slight dip, prices remain considerably above the pre-war level of 131.71p per litre. Tensions between the US and Iran continue to simmer, with the Strait of Hormuz still yet to flow freely.
US President Donald Trump announced today that the US is putting on hold its planned operation to escort stranded vessels through the Strait of Hormuz. He stated that the pause would last “for a short period of time” to determine whether a peace deal with Iran “can be finalised”.
Brent Crude oil remained above $100 a barrel on Wednesday morning, substantially higher than the $70 level recorded prior to the outbreak of hostilities. Experts cautioned motorists against expecting any significant further reduction in fuel prices.
He added: “Do not be fooled by a slight reprieve in fuel costs. With Captain Calamity in the White House, anything is possible and despite Marco Rubio declaring all the US goals have been achieved, Iran holds all of Trump’s infamous cards.
“This conflict is nowhere near over, and the possibility of escalation is not just a possibility but a probability. £2 per litre is not off the table and motorists should buckle up for a bumpy ride.”
He added: “Petrol prices dipping while oil stays above $100 may seem contradictory, but it’s a classic case of market lag. Pump prices reflect wholesale refined fuel costs and retailer margins rather than crude directly, the so-called ‘rocket and feather’ effect, where prices spike instantly on bad news but fall slowly as conditions stabilise.
“The current dip to 156.82p suggests the risk premium is easing as traders price in a potential pause in the Strait of Hormuz blockade. However, a return to pre-war levels near 140p remains unlikely while Brent stays above $100, with most analysts placing the floor around 150p. Should the conflict escalate or the blockade tighten, prices could surge toward 170p.
“The Strait carries roughly 20% of global oil, so even with supply physically flowing, traders price in insurance against a sudden shutdown. Recent headlines about a pause offer only temporary relief. The market remains on a knife-edge until a permanent diplomatic resolution is reached.”
