UK motorists saw the largest drop in diesel prices since 2000, with costs falling by 17p per litre as of June, according to the RAC. This significant decrease follows the agreement on a framework deal to end the US-Israel conflict with Iran, which had previously driven prices up.
Impact of the Iran War on Fuel Prices
The onset of the US-Israel war with Iran on February 28 caused a surge in fuel prices, disrupting energy production and transportation in the Middle East. Prices peaked with Brent crude reaching above $120 a barrel. However, following the framework deal in June, the price of Brent has fallen back to around $72 a barrel.
The AA has predicted further reductions in pump prices, stating, "the timing is perfect for the start of the summer holidays." Despite the decline, current prices remain higher than pre-conflict levels.
Current Diesel and Petrol Prices in the UK
According to the RAC, the average price of diesel fell from 183.75p per litre to 167.14p in June. Similarly, petrol prices dropped from 159.37p to 151.40p during the same period. However, these prices are still significantly above pre-conflict averages of 132p for petrol and 142p for diesel.
- Average diesel price on June 1: 183.75p
- Average diesel price on June 30: 167.14p
- Average petrol price on May 28: 159.53p
- Average petrol price on June 30: 151.40p
Future Expectations for Fuel Prices
The RAC expects petrol prices to dip below 150p and diesel to fall below 160p soon, contingent upon further decreases in oil prices. Despite the recent drops, current prices remain lower than those seen in the summer of 2022 when petrol reached 191.5p and diesel hit 199p.
Transporting oil remains a slow process, meaning wholesale price changes typically take around two weeks to reflect at the pump. In light of the conflict, fuel retailers have been cleared of price gouging accusations, with the official markets regulator stating it has not seen evidence of retailers exploiting the crisis.
🤖 This article was rewritten by Feed and Figures' editorial AI from a report originally published by BBC Business. Facts and quotes are preserved from the original; the rewrite focuses on clarity and structure. For the unedited original, see the source link below.
