Fuel Prices in Northern Ireland Continue to Decline
While many household expenses are rising, the cost of fuel in Northern Ireland is notably decreasing. Petrol prices have fallen to 124.2 pence per litre, and diesel prices have held steady at 131.9 pence per litre, according to the Consumer Council NI (CCNI).
This marks the lowest petrol prices in five years, a record that has been frequently surpassed as fuel costs have steadily declined since their peak in June 2022.
At that peak, prices reached 189.9 pence per litre for unleaded petrol and 197.5 pence per litre for diesel, influenced heavily by the geopolitical fallout from Russia's invasion of Ukraine.
The question remains: what factors are contributing to the current decrease in fuel prices in Northern Ireland, and how much further could prices fall?
Why Are Fuel Prices Lower?
Karen Smyth, director of infrastructure and sustainability at CCNI, explained that the price of petrol and diesel is influenced by multiple components, including the cost at which retailers purchase fuel and the quantities they acquire.
She noted that Northern Ireland’s relatively small market within the global fuel system, combined with ongoing geopolitical tensions, plays a role in the current pricing.
"Locally, the prices are very much linked to geopolitical instability, they're linked to supply and demand at global level... and money markets, currency exchange rates, which again there's no ability for people in Northern Ireland to control,"
explained Smyth.
She added,
"So although it's hard to predict - what we can see internationally is that there's an oversupply of oil at the moment, which is keeping prices low."
Public Reaction to Falling Fuel Costs
At a busy petrol station in Belfast city centre, motorists shared their perspectives on the recent fuel price reductions.
Jane remarked that she has been "definitely spending a lot less" on diesel week to week to maintain her vehicle.
"It's very good to see that prices have dropped because it's felt like its been high for a very long time now,"
she said.
"I think you always have to keep track of prices because the price of fuel is so much higher than what it used to be."
Jane also mentioned that she is using fuel price checker apps less frequently as prices continue to decline.
Taxi driver Mohamed expressed that fuel prices remain "still at a seriously high level."
He shared that despite driving a hybrid vehicle, which combines a petrol engine with an electric motor, he spends approximately £100 weekly on fuel.
"If I was driving something else, it would cost me a lot more,"
explained Mohamed.
"The increase in the price of fuel over the last few years has played a part in me choosing to drive a hybrid car."
Michael, another motorist topping up his tank, said he had not noticed a significant drop in fuel prices on a day-to-day basis.
"I normally try not to pay much attention to it,"
he said.
"I'd fill up my car quite a lot. I do a lot of miles, so if I looked back at it you probably would notice a bit of saving over the last while.
"Around 2022, when it was at its highest, I would've paid attention to the money a bit more.
"It was around £2 (per litre) back then in different places so it probably has made a big enough difference thinking about it now."
Prospects for Further Price Reductions
According to Smyth, factors such as an easing of tensions between Russia and Ukraine, as well as increased stability in the Middle East, have contributed to maintaining lower fuel prices.
However, she cautioned that future price trends remain uncertain.
"It would be foolish for me to say [fuel prices are] definitely going to keep on that lower trajectory, but certainly for the moment that seems to be the way the way it is."
How Drivers Can Monitor Fuel Prices
Drivers in Northern Ireland and across the UK can utilize fuel price comparison tools to identify the best prices at nearby petrol stations.
These tools provide information on the lowest and highest prices available, as well as average prices at various locations, enabling consumers to make informed decisions when refueling.
