Next week has the promise to be a better week for fuel card customers as the wholesale cost of oil slightly lowers. This follows weeks of significant gains and will hopefully the pressure on many businesses as they grapple with spiralling operating costs.

However, with retail prices tending to be slightly delayed in relation to the wholesale market, the retail pump prices are likely to continue to increase over the coming days. The average price of diesel is “perilously close” to record highs of £2 per litre as UK forecourts reached a new high of 197.1p on June 21st, according to figures from data firm Experian.
The average price of petrol was a record 189.3p per litre, which the AA branded a “disgrace” during a week where many workers were forced to use their cars to commute as national rail strikes created major disruptions.

Whilst the drop in wholesale this week is welcome, the medium-term continues to remain highly uncertain. Recessionary fears and increasing inflationary rates would usually soften the cost of oil. However, global demand continues to increase post-Covid, and with the supply of the oil market remaining extremely tight, it’s likely that fuel prices will edge higher over the coming months.

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