Diesel Prices Record Largest Monthly Drop Amid Easing Iran Tensions
UK diesel prices fell by a record 17p per litre in June, the most significant monthly decline since records began in 2000, driven by a drop in oil prices.
Diesel prices in the UK experienced a record-breaking plunge of 17 pence per litre during June, marking the largest single-month decrease since records commenced in 2000. This significant drop at the pump is attributed to a substantial decline in global oil prices, which in turn was influenced by easing tensions between the United States and Iran.
At the start of June, the average price for a litre of diesel in the UK stood at 183.75 pence. By the end of the month, this had fallen to 167.14 pence, a reduction of 16.6 pence. This decline surpasses the previous monthly record by nearly 5 pence, according to RAC Fuel Watch data.
For drivers of a typical family car with a 55-litre fuel tank, this translates to a saving of approximately £9, with the cost to fill up dropping from around £101 to just under £92.
The average price of petrol also decreased in June, falling by 8 pence per litre. While this was the seventh largest monthly decrease in over 26 years, it was less pronounced than the diesel price drop. Petrol car owners saw savings of about £4.40 per tank compared to the beginning of the month.
At major supermarket fuel stations, the price reduction for diesel was even more substantial, with an average drop of 19 pence per litre, falling from 182.37 pence to 163.28 pence. The decrease for unleaded petrol at these locations was 7 pence per litre.
Fuel prices on motorways also saw a decline, with unleaded petrol falling by nearly 8 pence per litre. However, the reduction for diesel on motorways was less significant, decreasing by 14 pence per litre.
RAC head of policy, Simon Williams, noted that while the savings are welcome, current average prices for diesel and petrol remain higher than before the conflict in the Middle East began. He explained that diesel prices had risen by 49 pence per litre between late February and mid-April. Williams indicated that fuel prices are expected to continue falling, with petrol anticipated to drop below 150 pence per litre and diesel below 160 pence per litre, provided oil prices remain in the low-$70s range. A return to pre-conflict prices would require further decreases in oil costs.