"Prakash Sharma, an energy analyst, noted: "Even with a sharp drop in oil prices, the effect at the pump is delayed because of how fuel moves through the supply chain. Drivers should expect gradual reductions over the coming fortnight rather than instant relief.""
"Lindsey Entwistle, a principal analyst at Wood Mackenzie, said: "Even if global crude falls, the UK market does not respond immediately. The structural pressures, from energy security to refinery costs, mean motorists should not expect a rapid return to pre-crisis prices.""
UK drivers may face a lag of several weeks before lower global oil prices result in cheaper petrol. Wholesale oil costs have decreased, but retail prices typically adjust after 1-3 weeks. Factors contributing to this delay include the wholesale lag, stock turnover, and market behavior. Analysts indicate that while initial price drops may occur within a week, more significant reductions will take longer. Ongoing geopolitical uncertainties and structural pressures may keep petrol prices elevated despite lower oil costs.
Read at London Business News | Londonlovesbusiness.com
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