Fuel Prices Halt Increases After 43 Days, Motoring Group Reports

The recent surge in fuel costs was largely driven by the effective closure of the Strait of Hormuz, a critical waterway responsible for transporting approximately 20% of the world's oil and liquefied natural gas. This disruption, stemming from the US-Israeli war with Iran, sent global crude oil prices soaring, directly increasing the cost of petrol and diesel.

With the temporary ceasefire, wholesale fuel costs have begun to decline from their recent peaks. A motoring group indicates that pump prices could start to fall by several cents per liter in the coming weeks. However, prices are still considerably higher than they were before the conflict began, though they remain below the record levels seen in summer 2022. Historically, the fuel industry has faced accusations of 'rocket and feather' pricing, where prices rise quickly but fall slowly. This dynamic means local price changes may vary.