The average price for delivered bulk diesel continued to fall in May and is now almost 50ppl below the fuel crisis high, according to data compiled by RHA.
May’s average was 105.72ppl. That is a fourth consecutive month-on-month drop and it represents a decline of 7.08ppl, or 6.3%, from April’s figures. The average is now down by 23.12ppl since January and by 49.69ppl, or 32.0%, from the June 2022 peak of 155.41ppl.
The latest drop puts the bulk diesel average price at its lowest since September 2021 in what will be welcome ongoing respite for an industry that is still dealing with elevated costs in other areas and continuing upward pressure on wage rates.
The average price of oil fell by almost 9% in May to US$75.69 per barrel, down from April’s US$83.11. The raw material is now US$43.15, or 36.3%, lower than its crisis peak in March 2022 of US$118.84, the trade body’s figures show. Sterling stayed constant at US$1.25 during May, keeping it well below its stronger position in 2021.
In a further welcome change, during May the US Energy Information Administration (USEIA) lowered its predictions for Brent prices via its short-term energy outlook.
For Q3 and Q4 it is now forecasting US$78.00 per barrel, well below the US$87.00 and US$86.00 respectively put forward in figures published in April. 2023’s average prediction now sits at US$78.65; in April, that figure was US$85.01
For 2024, USEIA now believes that the Brent average will be US$77.00 for Q1 before consistent falls see it finish the year at US$72.00. Those predictions also represent a reduction from the forecasts made in April, although other sources do not necessarily agree with the Administration’s view.
