Petrol prices fall but Israel-Lebanon conflict could impact future costs

• Petrol now costs 134.79p per litre and diesel 139.5p per litre
• Drivers save £3.60 per tank on average family cars
• Oil prices dropped from $78 to $72 per barrel in September
• Middle East conflict could lead to a spike in fuel prices

Significant fuel price drops in September

Petrol now averages 134.79p per litre, down from 141.26p, while diesel fell to 139.5p from 146p. These reductions mean drivers filling a typical 55-litre family car are saving around £3.60 each time they visit the pumps, with the cost of a full petrol tank now around £74, and diesel just under £77.

Since May, petrol prices have fallen by 15.5p, and diesel by an even larger 18.5p, translating to savings of up to £10 on a full tank of diesel.

Why petrol prices fell – and could fall further

The decrease in fuel prices is largely attributed to the steady fall in global oil prices. The cost of a barrel of oil dropped from $78 at the beginning of September to $72 by the end of the month, a significant reduction from its high of nearly $90 in July. This decrease, coupled with a slightly stronger pound, has made wholesale fuel prices cheaper for UK retailers, who are passing some of the savings onto consumers.

Supermarkets continue to offer some of the best deals on fuel, with prices around 3p lower than the UK average. For petrol, supermarket pumps are offering 131.86p per litre, while diesel stands at 136.47p per litre.

Israel-Lebanon conflict could reverse price drops

Despite the recent relief at the pumps, there is growing concern that the ongoing conflict between Israel and Lebanon could lead to a rise in oil prices. The Middle East is a key region for global oil production, and any prolonged instability could drive prices back up, potentially reversing the recent fuel price drops.

RAC fuel spokesperson Simon Williams expressed concern about the situation: “Serious global events of this nature often cause a spike in oil prices, which is never good for drivers in the UK, especially if it is sustained. Fortunately, since the start of May, the price of petrol has fallen 15.5p from 150.3p a litre, and diesel by 18.5p from 158p. This was due to oil coming down from $90 a barrel in early July to $72 at the end of September.”

However, Williams pointed out that lower wholesale prices in recent weeks might help cushion the impact of rising oil prices. He added:

“As pump prices have still been falling due to lower wholesale costs in recent weeks, there’s the potential for this to cushion the negative effect of a rising oil price to some degree. We very much hope the current situation won’t bring an end to the slightly better times at the pumps drivers have been benefiting from.”

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