The average price of diesel fell nearly 17p a litre in June setting a new record for the biggest fall in a single month since 2000.
Analysis by the RAC found that diesel averaged 183.75p per litre at the beginning of June and dropped 16.6p to 167.14p by the end of the month.
The average price of petrol also reduced by 7.97p per litre in June, falling from 159.37p to 151.40p.
This has saved petrol car drivers £4.40 a tank on a typical 55-litre family car (£87.65, down to £83.27). The diesel saving is even greater, with a full tank now £9 less than it was at the start of the month at £91.93, down from £101.06.
The pump price reductions were driven by a barrel of oil dropping from $94.98 at the start of June to just $72.92 on 30 June following a deal between the US and Iran to end the conflict.
However, prices remain well above the 142p for diesel and 132p for petrol at the start of the war, the RAC said.
The previous largest drop for diesel was the 12p reduction in May 2023 almost a year after the start of the war in Ukraine which sent the price of oil soaring.
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 15 April, 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.
“Although the supermarkets have reduced their prices significantly it’s often the case that smaller forecourts have the cheapest prices. In England, the lowest priced petrol is currently being sold by GW Holmes of Etherley Moor Garage in Bishop Auckland at 139.7p. The best diesel price appears to be 152.9p Linthouse Lane Service Station in Wolverhampton, which is matched by two Sainsbury’s sites also in the city.
“But it’s still Northern Ireland that leads the way with the cheapest average prices – here, the average price of petrol is already 147.5p and diesel 162.6p.
“We hope the transparency the government’s Fuel Finder scheme brings with retailers obligated to report their prices within half an hour of changing has helped with June’s price reductions.”
Separate analysis by Fuel Finder UK, an independent price monitoring service, found Morrisons has the lowest petrol price, with an average of 147.7p per litre across its 339 forecourts, compared to 148.3p at Sainsbury’s, 148.5p at Asda, and 148.6p at Tesco.
Of the largest forecourt brands BP averaged the highest petrol price with 153.2p per litre across 1,094 motorway and non-motorway petrol stations.
No comments yet