Saudi Arabia to cut oil production – but what will it mean for the UK drivers?
On Monday 5th June 2023, the world’s largest exporter of oil, Saudi Arabia, revealed that they would be cutting production by more than 1 million barrels per day.
The middle eastern country’s energy ministry stated that the Kingdom's output would drop to nine million barrels per day in July.
This is a fall from more than 10 million barrels per day that were recorded in May this year.
RAC fuel spokesperson Simon Williams said: “While oil production cuts are intended to push up the barrel price which usually means bad news for drivers at the pumps there’s currently no cause for panic.
“Diesel is still seriously overpriced due to its lower wholesale price which hasn’t been fully passed on by the biggest retailers despite a record 12p a litre fall in May so should continue to come down. And the price of petrol is also slightly too high and should fall by a couple of pence in the next week or so.
“Pump prices are now back to what they were in October 2021 with unleaded at 143.26p which means it’s very close to dropping below the previous long-term record high of 142.48p set in April 2012, but of course the Government’s 5p a litre duty discount is a big part of this. Diesel is already below its former all-time high of 147.93p from the same time.
“Oil producer group OPEC+ has taken well over 3m barrels a day out of circulation so far this year, but due to the economic downturn forecourt prices have continued to fall. For that reason, we remain hopeful this won’t affect drivers for some time.”
What do you make of the announcement? Leave your comments below.
- What affects the price of fuel?
- Latest petrol and diesel prices in the UK – RAC Fuel Watch
- How to save fuel – the ultimate guide
Cheaper than AA Price Promise^
• Roadside cover from £5.29 a month*
• We get to most breakdowns in 60 mins or less
• Our patrols fix 4/5 breakdowns on the spot
*At least 10% of new customers pay this for single-vehicle Roadside (Basic). ^Find the same cover cheaper with the AA within 7 days & we’ll beat it by 20%. †T&Cs apply.
You might also like
What to do after putting the wrong fuel in your car
If you’ve put the wrong type of fuel in your car, don’t panic. Here’s what you should do for both petrol and diesel misfuel.
What is the best fuel for my car? The definitive guide to different fuel types
To help you understand what fuel you should be putting into your car, here’s our simple guide to fuels in the UK and across Europe.
Tyre labels explained: fuel economy, grip and noise ratings
A full guide to tyre labelling, explaining what they mean and how they could affect your driving, personal safety and the money you spend on fuel.
Is it socially acceptable to ask passengers to contribute to fuel costs?
Ever since the Russian invasion of Ukraine, fuel prices in the UK have continued surge to all-time highs.
How to save fuel – the ultimate guide
8 industry-expert tips for how to save fuel: looking at cruise control, the speed you drive, what gear you drive in and how much fuel you carry
Popular in News
1
Car buyers to save thousands as EV grant returns
2
Private parking companies issue a record 14.4m tickets to drivers in a single year
3
Drivers fined £1m from just 36 yellow box junctions in 2024
4
Road deaths on the rise in Great Britain
5
Private parking industry urged to publish ‘full and transparent’ complaints and appeals data
6
Drivers now able to search for new home that comes with EV chargers
7
Leicester’s Sean Kimberlin named as RAC Mobile Mechanic of the Year
8
Number of drivers caught using unroadworthy vehicles jumps by 52% in a year
9
Warning to drivers across the UK over fake parking apps
10