Diesel prices fall by record amounts as Iran crisis eases
Diesel prices in the UK have suffered their biggest monthly fall in more than a quarter of a century as oil prices fell after the Iran crisis eased, new figures reveal.
The average price of a liter of diesel in Britain fell from 183.8p at the start of June to 167.1p at the end of the month, the RAC said.
This reduction of more than 16p per liter is the most significant reduction recorded since 2000.
The sharp drop in oil prices, an important factor in fuel costs, caused fuel prices to fall below pre-crisis levels for the first time since the war began on February 28.
It is stated that this is largely due to last week’s US-Iran peace agreement, which allows more tankers to pass through the Strait of Hormuz.
This meant that the cost of oil, which has a significant impact on fuel prices, fell below pre-crisis levels for the first time since the war began on February 28.
The average price of a liter of petrol fell 8p last month, from 159.4p to 151.4p.
RAC head of policy Simon Williams said: “June has been a much better month for drivers following 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 reflect this.”
But he noted that the cost of fuel was “much higher than it was at the start of the war”, with average petrol and diesel prices being 19p and 25p more expensive respectively.
He added: “As it stands now, petrol should soon fall below 150p and diesel below 160p, but the oil price needs to fall further before we see a return to pre-conflict prices.”
The average liter price of gasoline last month fell to its lowest level since the beginning of April, and experts said motorists could face even lower prices in the coming months.
The average oil price has fallen by nearly 5p since the conflict peak of 159.53p on 28 May, to 154.72p on 18 June, according to analysis by the RAC.
The cost of the Iran oil crisis to motorists in the UK was around £4bn due to rising fuel prices, according to the analysis.
The RAC Foundation, which helps motoring research, estimates that increases in pump prices since the start of conflict in the Middle East have led to drivers paying £3bn more for diesel and over £1bn more for petrol.
