Motorists have been given an encouraging update by the RAC, as fuel prices begin to fall following a peace deal between the US and Iran. Drivers in the UK can expect significant savings at the pumps in the coming weeks.
Fuel Costs Decline After Middle East Tensions
Fuel costs surged for British drivers after the US and Israel launched strikes on Iran at the end of February. The intensifying tensions in the Middle East caused oil prices to skyrocket, pushing up the price of filling up vehicles across Britain. Before late February, both petrol and diesel were hovering around 130p to 140p per litre. Since then, average petrol prices climbed as high as 159p, while diesel reached 191p.
But motorists refuelling in recent days will have spotted some encouraging signs. With reports of a deal now struck between the US and Iran, oil prices have tumbled significantly. The agreement includes provisions to reopen the Strait of Hormuz, a crucial oil shipping route that has been largely shut since hostilities erupted nearly four months ago.
RAC Highlights Savings
This development means fuel prices have begun to decline, with further reductions anticipated if peace is maintained and global markets stabilise. The RAC indicated that UK drivers can look forward to more positive news in the coming days and weeks.
Simon Williams, RAC head of policy, said: "The average price of petrol has now fallen nearly 5p a litre since its conflict high of 159.53p on 28 May to 154.72p on Thursday, saving almost £3 a tank. Unleaded hasn't been this price since early April."
"The diesel drop has been even more dramatic, having come down by 17p a litre from 191.54p on April 15 to 174.3p, which means drivers are saving £9.50 every time they fill up. The last time the UK average price of diesel was under 175p was on March 24."
Future Outlook
"Even more positively, the rate of reduction ought to accelerate as the price of a barrel of oil has been under $80 for the last two days – something we haven't seen since the start of March. Drivers can now expect to see the average pump price of petrol drop below 150p in the next week or so, while diesel should drop back under 170p."
"If Brent crude stays at this level or reduces further, the longer-term picture at the pumps should get even better," Williams added.
