Motorists are set to enjoy some much-needed relief in the coming weeks, according to a fresh update released by the RAC on Thursday. Petrol and diesel prices surged for UK drivers following the US and Israel attacking Iran at the end of February. The escalation of tensions in the Middle East sent oil prices soaring, driving up the cost of filling up a car across Britain.
Both petrol and diesel were hovering in the 130p to 140p per litre range before the end of February. Since then, the average price of petrol has climbed as high as 159p and diesel to 191p. Nevertheless, those filling up their vehicles in recent days will have noticed some encouraging signs.
With a deal now reportedly signed between the US and Iran, oil prices have fallen considerably. The agreement includes plans to reopen the Strait of Hormuz, a critical shipping lane for oil that has been virtually closed since the conflict began nearly four months ago.
Fuel Prices Drop After US-Iran Deal
This all means that fuel prices have begun to drop, with further reductions anticipated should peace hold and the global economy stabilise. The RAC indicated that UK drivers could look forward to more positive news in the days and weeks ahead.
RAC head of policy Simon Williams 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."
Further Reductions Expected
"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.
Latest UK petrol and diesel prices show that diesel rose quicker and is now falling quicker. The RAC advises drivers to keep an eye on prices as the situation develops.
