Petrol and diesel prices could fall to levels last seen in 2021 on the back of tumbling oil prices.

The RAC said the drop in oil prices could bring cuts of up to 6p a litre at the pumps

International oil prices dropped below $60 a barrel amid mounting concerns of a global recession on the back of US President Donald Trump’s new trade tariffs.

The RAC said the drop in oil prices could bring cuts of up to 6p a litre at the pumps ahead of the busy Easter weekend on the roads.

Petrol should drop from its current UK average of 136p to 130p a litre and diesel from 143p to 137p.

Such prices would be the cheapest since summer 2021 for petrol and September 2021 for diesel.

Head of policy Simon Williams said: “As long as the barrel carries on trading around or below the $65 mark, retailers will be obliged to pass on the savings they’re benefiting from to their customers on the forecourt.

“The RAC believes they should be motivated to do so as they continue to be scrutinised by the Competition and Markets Authority (CMA), which only a week ago reported that it’s still concerned about a lack of competition in fuel retailing.”

The UK’s competition watchdog said last week that fuel margins remain stuck at high levels, impacting prices paid by drivers at the pump.

The latest interim monitoring report from the CMA found that fuel prices increased from October 2024, reaching 139.6 and 146.8 pence per litre (ppl) for petrol and diesel by the end of February; up 5.2ppl and 7.1ppl respectively.

The CMA said the rises reflect in part changing crude oil prices and refining spreads, both of which are driven by global factors.

But it also warned that retailer fuel margins – the difference between what the retailer pays for fuel and sells it at – were similar to the high levels seen during its road fuel market study.

The UK’s competition regulator also said the fuel finder scheme set to launch this year should be a “game changer” for drivers – allowing them to find the cheapest fuel prices while boosting competition between fuel retailers.