Hopes of an end to the Middle East conflict have seen petrol prices fall sharply – but motorists are still paying a lot more than before the war erupted
Millions of diesel drivers have benefitted from a record slump in pump prices, amid hopes of an end to the conflict between the US and Iran.
Figures from the RAC show the nationwide average for diesel tumbled nearly 17p in June, from 183.75p a litre to 167.14p. The previous largest drop in a calendar month was 12p in May 2023, almost a year after the start of the war in Ukraine sent the oil price soaring.
The average price of petrol also reduced by 8p a litre in June – making for the seventh largest monthly fall in the past 26-and-a-half years – falling from 159.37p to 151.40p. The sharp drop has saved petrol car drivers £4.40 a tank on a typical 55-litre family car. The diesel saving is even greater, with a full tank now £9 less than it was at the start of the month – £91.93, down from £101.06.
The welcome reductions were driven by a barrel of oil sliding from $94.98 at the start of June to just $72.92 on June 30 after a deal was announced between the US and Iran to end the conflict.
RAC head of policy Simon Williams said: “June has been a far better month for drivers on the back of the announcement of a deal between the US and Iran to end the conflict. The price of oil has fallen dramatically and prices at the pumps have reflected that.
“While diesel dropping 17p in a month is very positive, it’s also important to realise that its average price shot up 49p a litre from the end of February to 191.54p on April 15, which equates to a rise of more than a penny a day. So, the cost of the fuel today remains far higher than it was at the start of the war.
“Fortunately, the oil price is now in the low-$70s range which is only $10 above the average of the first two months of the year. At the time the conflict began drivers had average prices of 132p for unleaded and 142p for diesel, so we’re still some way off those levels.
“As things stand, petrol should dip under 150p soon and diesel ought to get to below 160p but we would need the price of oil to fall further to see a return to the pre-conflict prices.”
