May '23 Oil and Fuel Price Review

#Fuel Prices
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May '23 Oil and Fuel Price Review

High prices at the pump continue

The average pump ppl of diesel (ex VAT) has dropped 3.3p month on month. Sounds good, until you realise the base price dropped 4.9p.  Businesses using diesel and not using a fixed-price fuel card are absolutely overpaying. At a time when costs are going up across the board, it’s more important than ever to ensure you have the right card for your needs.

A lack of confidence in the oil markets

Oil prices have recovered since the banking scare last month, with prices back in line with February. However, expectations from economists are that oil prices will continue to rise to over the $100+ mark in the second half of the year.  Whilst demand for oil has risen thanks to increasing air traffic and rising demand from China, OPEC and others are still feeling very cautious with a view that overall consumption will reduce in the longer term. This cautiousness sparked a surprise cut in production from OPEC of just over 1.15mbp at the start of April.

RFC fuel price prediction

For those dependent on pump prices, the outlook remains a bit grim.  As vocal as the RAC is in the media, there appears to be little inclination from retailers to drop their prices significantly.  The hope is that, at the very minimum we’ll continue to see a gradual fall in prices in the short term. Businesses with fixed-price fuel cards should continue to see decent savings against the pump. Find out more about how a fuel card could help your business.