UK drivers are experiencing significant relief at the pumps this week as the average price of petrol has plunged to its lowest level since early April, with experts forecasting even steeper discounts in the coming weeks.
Breakthrough Deal Drives Down Costs
The sudden drop follows a landmark diplomatic agreement between the United States and Iran. The deal officially ends hostilities and establishes a framework to reopen the crucial Strait of Hormuz, a vital maritime shipping lane for global crude oil that had been blocked for months due to the conflict.
According to recent data compiled by the RAC, fuel prices have responded rapidly to the easing of geopolitical tensions. The average price per litre of petrol has dropped by nearly 5p, falling from its conflict peak of 159.53p on May 28 to 154.72p on Thursday.
Diesel Sees Even Sharper Decline
When it comes to diesel, the decline has been even more pronounced. Diesel prices have plummeted over 17p from its April 15 high of 191.54p down to 174.30p. This sharp decline means motorists are now saving an average of £9.50 every time they fill up a standard family car. It marks the first time UK diesel averages have fallen below the 175p threshold since late March.
Experts Predict Further Reductions
Industry experts expect the downward trend to accelerate. Global crude markets have already reacted to the peace deal, with Brent crude trading under $80 a barrel for two consecutive days, a low not recorded since early March.
Simon Williams, head of policy at the RAC, said: “The diesel drop has been even more dramatic having come down by 17p a litre from 191.54p on 15 April 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 24 March.
“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.”
Williams added that if Brent crude continues at the current level or continues to fall, then prices at the pumps “should get even better”.
