Fuel prices are expected to drop significantly in the coming weeks, with petrol prices potentially falling by 6p per litre and diesel by 3p per litre, according to RAC Fuel Watch data.

The price reduction is driven by falling oil prices, which have decreased from $80 per barrel in mid-January to under $70 today - the lowest sustained price since August 2021. If oil prices remain stable, petrol could reach around 130p per litre, with diesel dropping to approximately 140p.

Northern Ireland is already seeing lower prices, with petrol averaging 133p per litre and diesel 139p, which is 6p and 7p cheaper than UK averages respectively.

RAC's head of policy, Simon Williams, expects retailers to begin lowering prices this week as they restock at cheaper rates, though the extent of savings passed on to customers remains uncertain.

Key factors affecting fuel prices:

• Wholesale prices (main driver)
• Crude oil prices
• Pound-to-dollar exchange rates
• Distribution costs
• Taxes (fuel duty and VAT)
• Retailer margins

Competition concerns persist in the fuel retail sector. The Competition and Markets Authority (CMA) found that major retailers overcharged drivers by £1.6bn in 2023, up from £900m in 2022. The CMA continues to monitor the situation, with their next quarterly report expected later this month.

For the best fuel prices, consumers are advised to compare local stations, as prices can vary significantly between retailers. Current market conditions suggest holding off on filling up could lead to savings in the coming days.

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