Petrol and diesel prices ‘very likely to be lower’ by the end of the year

The latest data from the RAC Fuel Watch report states that petrol and diesel prices remain relatively stable after recently increasing in price again.

The UK average price for a litre of petrol is 144.70p, while diesel drivers face costs of around 145.5p a litre, although diesel prices should continue to fall.

Naturally, supermarket prices are cheaper with petrol drivers saving around 3p per litre and 1.5p per litre for diesel motorists.

Following over a year of price chaos, motorists are finally adjusting to the price of fuel, although fluctuations can always occur.

Paul Holland, MD of UK Fleet, Allstar, said that price changes could be around the corner, but reassured drivers that the record prices seen last year would likely not be repeated.

Speaking to Express.co.uk, Mr Holland said: “Does this mean higher prices on the horizon? Not necessarily. 

“The market suggests that the risk of a global economic downturn is still greater than any potential reduction in OPEC supply, as demonstrated by the December 2023 Futures price being around 1p/litre cheaper than the current price.”

Despite the falling prices at forecourts up and down the country, motorway service stations are still charging huge premiums.

A litre of petrol costs an average of £1.66 at a service station, while diesel costs £1.69 – more than 20p more expensive than the UK average and almost 25p higher than supermarkets.

Mr Holland continued, saying: “What does all this mean for the rest of the year? As always, there’s a tension between the producers who want high oil prices and consumers who want it lower. 

“However, it looks like stakeholders are pricing in the strong likelihood of an economic downturn rather than assuming that drivers will be able to pay high prices. 

“Fuel prices are still not as low as they could be, and despite OPEC’s struggling to keep them at 2022 levels, it is very likely that they’ll be lower by the year’s end.”

Experts have continually called for the Government to introduce a way to ensure motorists can see which petrol stations near them are selling for the lowest rate.

In Northern Ireland, drivers can benefit from the Consumer Council’s Fuel Price Checker, which shows the average, cheapest and most expensive petrol and diesel prices for towns and cities across the country.

There have been calls for the rest of the UK to introduce such a scheme, not only to help drivers but to boost competitiveness between brands.

If there is a constantly updating database of petrol and diesel prices, retailers will be incentivised to cut their prices to levels which will attract customers.