UK petrol prices fell for the first time in months on September 18, 2023, according to the RAC. The average price of a litre of petrol fell by 0.5p to 149.66p, while the average price of a litre of diesel fell by 0.4p to 152.12p.

The fall in prices comes as the wholesale cost of oil has declined in recent weeks. The price of Brent crude oil, which is the global benchmark for oil prices, fell below $90 a barrel on September 18, the first time it has done so since February 2022.

The fall in oil prices is due to a number of factors, including a slowdown in global economic growth, increased oil production from OPEC+ countries, and the release of oil from strategic reserves by the United States and other countries.

The fall in petrol prices is good news for motorists, who have been facing record high prices in recent months. However, it is too early to say whether the fall in prices is sustainable. The price of oil is volatile and can be affected by a number of factors, including geopolitical events and changes in supply and demand.

Analysis

The fall in UK petrol prices on September 18 is a welcome relief for motorists, who have been facing record high prices in recent months. The fall in prices is due to a number of factors, including a slowdown in global economic growth, increased oil production from OPEC+ countries, and the release of oil from strategic reserves by the United States and other countries.

However, it is too early to say whether the fall in prices is sustainable. The price of oil is volatile and can be affected by a number of factors, including geopolitical events and changes in supply and demand.

If the fall in oil prices is sustained, it could lead to a significant reduction in the cost of living for UK households. Petrol and diesel prices make up a significant proportion of household spending, so a fall in prices could boost consumer spending and support economic growth.

However, it is important to note that the fall in oil prices could also have negative consequences for the UK economy. Many oil and gas companies are headquartered in the UK, and a fall in oil prices could lead to job losses in the sector. The fall in oil prices could also lead to a reduction in tax revenue for the UK government.

Overall, the fall in UK petrol prices on September 18 is a positive development for motorists and the UK economy as a whole. However, it is too early to say whether the fall in prices is sustainable.