Oil price falls below $100 but petrol hits new high

Motoring groups have called for fuel prices to fall as the cost of crude oil fell to its lowest level in two weeks.

For the first time since the beginning of March, the price of the global benchmark for prices dropped below $100 a barrel.

Fuel retailers start passing on falling wholesale prices to consumers, according to the RAC.

The price of petrol hit a record high on Monday, meaning it costs more than 90 to fill a family car.

Diesel hit a new record of 173.68p on Monday, while the average price of petrol rose to 163.71p.

The price of crude oil hit a 14-year high after Russia invaded Ukraine.

In the past few days, the price of oil has dropped due to a number of factors, including hopes of a ceasefire between Russia and Ukraine, and expectations that demand from China will ease as Covid cases there surge.

After falling to about $98 a barrel on Tuesday, crude recovered some ground.

The fall in oil and wholesale prices should be good news for drivers, according to Simon Williams.

It is vital that the biggest retailers who buy fuel most often start to reflect these reductions at the pumps to give drivers a break from the pain of constantly rising prices.

The AA said that the wholesale price of petrol has fallen since Wednesday.

We should see these record prices fall away later this week, according to the AA. The MPs who are being bombarded with complaints need to ask questions in Parliament.

The cost of living crisis is putting pressure on the government. They do not need the fuel trade to see a drop in pump prices.

Andrew Opie from the British Retail Consortium said supermarket retailers understand the cost pressures facing motorists, and will do everything they can to offer the best value for money across petrol forecourts.

When fresh stock is delivered, the petrol retailers association expects prices to fall.

Gordon Balmer, the Executive Director of the PRA, said forecourts were bought from suppliers based on a price with one or two days lag. It can take a few days for wholesale prices to get to the pumps.

The price of crude oil and the dollar exchange rate determine the price of oil.

Russia is the third largest oil exporter and some Western countries decided to stop imports from the country in response to Russia's actions. Increased demand for oil from other producers leads to increased prices.

The UK only imports a small amount of oil from Russia, so it is not as dependent on Russia for the commodity supply as other European countries are.

The price is affected by global shifts.

Some analysts told the Treasury Committee that the recent fall in the oil price was temporary.

The head of oil and gas research at Investec said that consumers need to be prepared for what could be continued increases in fuel prices.

The director of research at Energy Aspects told the committee that the price of petrol could go up to 2.40 a liter. The diesel prices were definitely in the realm of possibility.

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