Petrol prices fall to lowest in four years ahead of bank holiday
The average litre now costs 134.1p, according to the RAC, down from just over 150p a year ago as the trade war drives down oil prices. Diesel now costs 140.6p per litre.
It takes petrol prices to the lowest level since July of 2021, when the market was still recovering after the pandemic crushed costs.
The latest drop comes after Donald Trump's trade tariffs raised fears of a global recession and sent the oil price tumbling on global markets.
A barrel of Brent crude now trades for less than $62, down from $75 before the US president's 'liberation day' tariffs of April 2, and a high of $82 in January.
On top of that the dollar has weakened, sending the pound up to $1.33 and making fuel cheaper for buyers in Britain as oil is traded in dollars.
Shreyas Gopal, at Deutsche Bank, said the fall in both the dollar and oil prices had combined to make oil 30pc cheaper in the UK than it was at the peak in January.
'A similar story holds when looking at the 12-month contract for UK natural gas,' he said, predicting that lower pump prices would provide a boost to real disposable income.
Figures from the RAC show fuel prices fell by 2p per litre last month, but the motorists' group argued that petrol and diesel would be another 4p lower if the full drop in oil markets had been passed on to drivers.
Simon Williams, at the RAC, said: 'On one hand it's good news prices at the pumps fell for the second straight month, but on the other it's disappointing that retailers didn't drop their prices further considering how low oil and wholesale prices continue to be.
'Drivers right across the UK should really be benefiting from petrol being sold at an average of nearer to 130p and 136p for diesel. For now, only those in Northern Ireland are doing so.
'The data shows there's still scope for prices to be reduced by about 4p a litre, so we call on major retailers to reward their customers with some further significant forecourt cuts soon.
'Some are already selling both fuels for very low prices at particular sites – we'd just like to see this happening more frequently around the country. For example, both Asda and Sainsbury's are selling unleaded for under 125p a litre in Ipswich.'
A drop in wholesale gas prices is also expected to lead to lower household bills when the energy price cap is next reset by the regulator.
Analysts at Cornwall Insight predict that, if current trends continue, Ofgem will cut the cap by almost 9pc, equivalent to a £166 drop in the typical household's annual bill to £1,683.
It marks a contrast with April's rise, which followed a spike in gas prices as a cold snap pushed up demand in February.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
36 minutes ago
- Yahoo
Nigerian Oil Stands to Gain as India Shies Away From Russian Crude
A week ago, U.S. President Donald Trump came down hard on India, doubling its tariff rate from 25% to 50% for fueling Putin's war in Ukraine by continuing to buy massive quantities of Russian oil. We reported that India's imports of Russian commodities have skyrocketed since the war began, surging to $65.7 billion in 2024 from $8.25 billion in 2021, according to India's The Business Standard. In sharp contrast, imports by the European Union and the U.S. have declined by more than 80% as they look to choke Russia's war machine. And now India has rapidly moved to distance itself from Moscow, turning to Africa and other suppliers as it goes into a buying frenzy. In recent weeks, Indian refiners have purchased two million barrels of Nigerian crude for September and October delivery; one million barrels of Angola's Girassol, three million barrels of Abu Dhabi Murban, and a million barrels of U.S. Mars. Interestingly, India is returning to the spot market, with Punch reporting that state refiner Bharat Petroleum Corporation Limited (BPCL) has made spot purchases and also negotiated for September deliveries. Over the past couple of years, India has become the biggest buyer of discounted Russian crude, accounting for 40% of its total imports at its peak in 2024. This was enough to meet India's surging oil demand and keep it off the spot might be the beginning of a long-term relationship between India and Nigeria, thanks to the low sulfur content of Nigerian crude grades, making them ideal for India's refineries. However, India will now have to contend with Africa's largest refinery–the Dangote Refinery. According to Devakumar Edwin, vice president Dangote Industries, the giant refinery will buy 100% of its crude from the Nigerian market by the end of the current year, a reversal from its earlier trend of buying most of its crude from the United States, Brazil, Equatorial Guinea, Angola and Ghana. Owned by Nigeria's and Africa's richest man, Aliko Dangote, the 650,000-barrel-per-day refinery began operations in 2024 after repeated delays. Ranked as having a higher capacity than Europe's largest refineries, the $20-billion refinery now produces diesel, gasoline, aviation fuel and naphtha. Though yet to ramp up operations to full capacity, the Dangote refinery has been a major milestone for Nigeria and Africa's energy sector, transforming Africa's largest oil producer into a net exporter of petroleum products. However, the refinery was initially forced to rely on large volumes of imported crude, with local traders unable to meet its demand. Thankfully, improving coordination between the refinery, the Nigerian government and local oil traders has made the supply of domestic crude more consistent and reliable. Last month, Dangote refinery purchased 53% of its crude from Nigerian producers, with 47% coming from the United States. According to Edwin, the plant is currently processing ~550,000 barrels of crude per day, good for 84.6% of its maximum capacity. India is also looking to break China's dominance in rare earths supply, recently establishing cooperation agreements with mineral-rich countries in Latin America, Asi,a and Africa shortly after China further restricted the export of REE in 2024. "In the interest of developing bilateral cooperation with countries having rich mineral resources, the Ministry of Mines has entered into bilateral agreements with the governments of several countries, including Australia, Argentina, Zambia, Peru, Zimbabwe, Mozambique, Malawi, and Côte D'Ivoire, as well as international organizations such as the International Energy Agency (IEA)," India's Minister of State for Atomic Energy, Jitendra Singh, said in a written statement. Still, India has adopted a recalcitrant tone, vowing to continue buying Russia's crude, two sources previously told Reuters."These are long-term oil contracts. It is not so simple to just stop buying overnight,'' one of the sources said. A second source tried to justify India's imports of Russian crude, claiming it had helped to avert a surge in global oil prices. The source also pointed out that, unlike the situation in other heavily sanctioned countries like Iran and Venezuela, Russian crude is currently not subject to direct sanctions, and India was only buying from the embattled country because it offered cheaper oil thus shaving billions of dollars off its energy bill every year. Well, this might actually be India's official position: According to India's foreign ministry, India has maintained a "steady and time-tested partnership" with Russia. "On our energy sourcing requirements ... we look at what is available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," he said. By Alex Kimani for More Top Reads From this article on
Yahoo
43 minutes ago
- Yahoo
Dollar slips as investors eye September Fed cut
By Rae Wee SINGAPORE (Reuters) -The dollar weakened on Wednesday after a tame reading on U.S. inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over U.S. institutions also undermining the currency. U.S. consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump's sweeping tariffs to goods prices has so far been limited. Investors eyeing imminent Fed cuts cheered the data and moved to price in a 98% chance the central bank would ease rates next month, which in turn dragged on the dollar. Against the yen, the dollar was last 0.05% lower at 147.76, while the euro was steady at $1.1676, having risen 0.5% in the previous session. The dollar index last stood at 98.08, after falling roughly 0.5% on Tuesday. "The July CPI report showed less evidence of tariff pass-through to consumer prices...(but) I think a September rate cut is less than certain, probably not as certain as current market pricing," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "As the last payroll shows, one report can be sufficient to move the policy debate to one side or another. So I think we still have to wait until the remaining data to print before making a strong case about a rate cut or an on hold decision." U.S. Treasury yields similarly fell on the heightened rate cut expectations, with the two-year yield last at 3.7371%, having swung in a range of nearly 10 basis points on Tuesday. The benchmark 10-year yield was little changed at 4.2965%. [US/] Also eroding investor confidence in the dollar were fresh attempts by Trump to undermine Fed independence, after White House spokeswoman Karoline Leavitt said on Tuesday that the U.S. president was considering a lawsuit against Fed Chair Jerome Powell in relation to his management of renovations at the central bank's Washington headquarters. Trump has been at loggerheads with Powell and has repeatedly lambasted the Fed Chair for not easing rates sooner. The president also hit out at Goldman Sachs CEO David Solomon, saying the bank had been wrong to predict U.S. tariffs would hurt the economy and questioned whether Solomon should lead the Wall Street institution. Elsewhere, sterling gained 0.03% to $1.3504. Britain's jobs market weakened again though wage growth stayed strong, according to data on Tuesday, underscoring why the Bank of England is so cautious about cutting interest rates. "(The) UK jobs figures pointed to the labour market remaining in fragile shape," said Michael Brown, senior research strategist at Pepperstone. "My base case still has the next 25bp cut pencilled in for November, though there is a long way to go, and a lot of data to come, before then." In other currencies, the Australian dollar dipped 0.05% to $0.6526, while the New Zealand dollar fell 0.03% to $0.5953. The Reserve Bank of Australia on Tuesday cut interest rates as expected, and signalled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
TheStreet Pro's analysts tackle tariffs, crypto and more in market roundtable
TheStreet Pro's analysts tackle tariffs, crypto and more in market roundtable originally appeared on TheStreet. During these turbulent times, some investors might be tempted to ask how do I get off this merry-go-round? We're hearing all about tariffs, artificial intelligence, cryptocurrency and an incredibly contentious political environment. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 Jason Meshnick, managing editor for TheStreet and TheStreet Pro, sat down recently with some of the TheStreet's top contributors for the August edition of the Live Quarterly Call to review the state of the market. Tariffs have been a key factor for traders since April, when President Donald Trump unveiled his regimen of levies. "Who's going to pay them?" Meshnick asked. "And, what will the impact be? Will the impact be as great as some are fearing or hoping?" TheStreet Pro contributor Louis Llanes said that it is difficult to make a blanket statement about the effect of tariffs. "If I had to guess, it's going to have a slight inflationary impact, but not a massive inflationary impact," he said. "There are some companies that don't have to pass it on." Technician cites AI Capex spending "And secondly, because I think a lot of the tariffs, the actual percentages will drop over time as negotiations work themselves out." The Trump administration is fighting against legal challenges to the tariffs, including a case in the Court of Appeals for the Federal Circuit in Washington. More Experts Stocks & Markets Podcast: Sectors to Avoid With Jay Woods Trader makes bold call with Boeing stock after defense workers strike Veteran fund manager sends urgent 9-word message on stocks "I think the question is, will these tariffs even last the next three and a half years?" TheStreet's financial markets reporter Noah Weidner said. "The One Big, Beautiful Bill seems to be kind of a busted attempt at mopping up our budget and growth problems. So at this stage, I think the best case scenario for Americans and for traders is that tariffs do decline." "I don't know if they're going to go away," he added. "But I do think one of the longer tail questions is, what will they look like in four years?" "That is the billion dollar question." Meshnick said. "What will they look like in four months?" Helene Meisler, a market technician and equity trader who has been writing for TheStreet since 1998, said that "there are a lot of charts out there that show when it comes to CapEx spending, it's all AI and consumer spending is dipping below the line." "And I'm no economist," she added. "But I also know that the consumer is 70% of our economy. So, something's got to give." Meshnick noted that the CapEx has grown dramatically for AI companies. "As revenues grow, they're also spending more money to continue that growth rate," he said. "And so they're probably looking more like a manufacturing company." The panel discussed opportunities in the current market and Meisler said that in this earnings season even if a company meets or beats Wall Street's expectations, the stock is gapping down or going nowhere. Focusing on 'macro safe havens' "We're having a lot more gapping down in July, and you have a lot more stocks that are going nowhere," she said. "The majority of stocks right now have been in a correction for six or seven weeks. And it seems to me they're probably still in a correction." "I think a lot of people were happy about what happened in April," Weidner said. "It gave them an opportunity to buy up. I think a lot of large wealth managers were happy to buy that dip for their clients.""A lot of people bet on American exceptionalism, for what it's worth," he continued. "I don't know if a lot of people see the long tail of what's going to happen, but they saw a dip and they bought it, and we are back where we started. We're well-above where we started." Llanes said he was focusing on what he called "macro safe havens," such as gold, mining, and as well as "the AI tailwind concept that made quite a bit of money on Palantir, Nvidia, and surrounding." "I still think that that trend is in play," he said. "There is some consumer resilience in certain areas. DoorDash. And then the re-industrialization, like CSX. Freight is likely to continue and actually to improve." Llanes said his biggest position currently focused on growth in the slowdown, such Hershey () --"which everybody hated"-- and Constellation Brands () . "I've always talked about quality valuation, evaluation, and technicals," he said. "The best investments that I've had in my career have been when you can get alignment on those." Regarding cryptocurrency, Weidner said he believes that "that among sports, gambling, stock trading apps, and crypto, one of these businesses doesn't know that they're all in the same business." "I would expect that if the stock market were to start falling, you would start to see crypto falling," he said. "You would start to see gambling behavior falling. You would start to see people not using prediction markets as much."TheStreet Pro's analysts tackle tariffs, crypto and more in market roundtable first appeared on TheStreet on Aug 11, 2025 This story was originally reported by TheStreet on Aug 11, 2025, where it first appeared. 登入存取你的投資組合
