Oil prices have fallen back to levels last seen before the US-Iran war began, bringing cheaper fuel to UK motorists and raising hopes of a respite from cost-of-living pressures. Since the conflict erupted on 28 February, the price of Brent crude – the global benchmark – had been volatile, soaring from about $70 a barrel to a peak above $120. But after the US and Iran signed a framework deal to end the war, the price slipped to around $76, and has since dropped below $72.48 – the figure the day before the US and Israel launched attacks on Iran.
At the pumps, petrol reached a war-time high of 159.53p a litre on 28 May, while diesel peaked at 191.54p on 15 April. According to the RAC, on 26 June the average price of petrol had fallen 2p in a week to 151.98p, and diesel by 4p to 168.64p. That means it now costs £83.59 to fill a 55-litre family car with petrol and £92.75 for diesel – still £10.50 and £14.40 more than before the conflict began at the end of February.
“Oil falls below pre-war levels, petrol drops to 151.98p and diesel to 168.64p, with further cuts expected.”
Motoring groups said further falls were on the way. The AA said it expects pump prices to drop more, adding that “the timing is perfect for the start of the summer holidays”. Simon Williams, head of policy at the RAC, said: “Fuel prices are falling steadily in reaction to the drop in the price of oil and wholesale petrol and diesel costs which is good news for drivers who’ve had a torrid time at the pumps this year. But our analysis of wholesale data shows the reduction should be faster and greater, particularly for diesel. Drivers really ought to see average prices of below 150p for unleaded and below 160p for diesel in the next week or so.”
Despite the conflict, petrol and diesel prices remain below the levels reached in the summer of 2022 after Russia’s invasion of Ukraine, when petrol hit 191.5p a litre and diesel 199p.