Oil Prices Collapse: Fuel Costs Set to Drop—But Global Economic Fears Loom

A welcome break for drivers

The recent plunge in oil prices suggests that fuel costs at the pump are likely to decline in the coming days. On Friday, April 4, markets took another hit following China’s response to the U.S. trade offensive. Brent crude for June delivery dropped by 7.53%, settling at $64.86 per barrel—its lowest since August 2021—while West Texas Intermediate (WTI) fell by 8.19% to $61.47. These sharp declines came on the heels of an already significant drop the previous day.

Francis Perrin, energy expert and research director at the French think tank IRIS, stated that fuel prices will “undoubtedly go down,” calling it “good news for consumers and for our trade balance” as lower transport costs could ripple through the economy. However, he warned that the drop at the pump won’t be immediate, nor will it mirror the sharp fall in crude prices, given that taxes on fuel remain unchanged.

As of last week, official data from the Ministry for Energy Transition showed diesel averaging €1.6276 per liter, while unleaded 95 was at €1.7127. If crude oil prices continue their slide, these fuel prices could also decline further in the coming weeks.

An alarming signal for the global economy

Beyond consumer relief, the oil price crash reflects deeper global anxieties. The ongoing trade war between the U.S. and China—reignited by Washington’s new tariffs and Beijing’s swift retaliation (a 34% surcharge on U.S. goods effective April 10)—has investors bracing for a potential global slowdown.