When will the price of fuel go down? Oil prices tumble after ceasefire

The price of Brent crude dropped by more than 14% after the deal to reopen the Strait of Hormuz eased fears over disrupted global supplies.

However, while wholesale costs react almost instantly to geopolitical developments, petrol and diesel prices typically take longer to adjust.

Why prices do not fall straight away

Fuel prices in the UK are influenced by several factors beyond crude oil, including refining costs, distribution, retailer pricing strategies and currency movements.

Retailers also tend to pass on price increases more quickly than decreases – meaning drivers often feel rises within days, but must wait longer for cuts.

How long could it take?

Industry analysts say it can take between one and four weeks for lower oil prices to feed through to forecourts.

That delay reflects the time it takes for existing, more expensive fuel stock to be sold before cheaper wholesale purchases are reflected in pump prices.

If oil prices remain lower over the coming weeks, gradual reductions in petrol and diesel costs are expected – rather than a sudden drop.

Why prices may not fall much

Despite the recent decline, oil prices remain significantly higher than before the conflict began, when Brent crude was closer to 70 dollars a barrel.

This means any reductions in fuel prices may be limited unless oil continues to fall or stabilises at lower levels.

The strength of the pound against the dollar – the currency oil is traded in – will also play a role in how much UK motorists benefit.

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What to watch next

The key factor will be whether the ceasefire holds and supply routes remain open.

Any renewed disruption around the Strait of Hormuz could quickly push oil prices higher again, reversing recent falls.

For now, the drop in oil offers the potential for cheaper fuel – but for drivers, the impact is likely to be gradual and uncertain rather than immediate.