Diesel prices recorded their largest single-month drop since 2000 in June, falling by nearly 17p per litre, according to new data from RAC Fuel Watch. The average price of diesel tumbled from 183.75p at the start of June to 167.14p by the end of the month, a decrease of 16.6p. This surpasses the previous record set in May 2023, when prices dropped by nearly 12p amid the fallout from the war in Ukraine.
Petrol Prices Also Fall
Petrol prices also saw a significant reduction, dropping by nearly 8p per litre (7.97p) from 159.37p to 151.40p. This marks the seventh greatest monthly price drop for petrol in the last 26 years. The RAC estimates that these reductions save petrol drivers £4.40 on a typical 55-litre family car, while diesel drivers save £9 compared to the start of June.
Oil Price Decline Drives Savings
The price drops were driven by a sharp decline in the barrel of oil price, which fell from $94.98 (£71.55) at the beginning of June to $72.92 (£54.94) on June 30. RAC head of policy Simon Williams attributed the fall to a deal between the US and Iran to end the conflict, saying, "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."
Regional Variations Persist
However, pump price reductions vary across the country. While the big four supermarkets saw diesel prices drop by as much as 19p, motorway services only recorded a reduction of around 14p. For petrol, services saw an 8p drop, while supermarkets saw a slightly smaller 7p reduction.
RAC Warns Prices Still High
Despite the positive news, Williams cautioned that fuel prices remain far above pre-conflict levels. "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," he said. He added that the oil price is now in the low-$70s range, only $10 above the average of the first two months of the year, but drivers had average prices of 132p for unleaded and 142p for diesel before the conflict began.
Current Average Prices
As of June 30, the UK-wide average price for petrol stands at 151.40p, though the most commonly seen price on forecourts is slightly lower at 149.9p. Diesel averages 167.14p, but is generally higher at forecourts at 169.9p. Drivers can check the cheapest local fuel prices using the Daily Record fuel price widget by entering their postcode and search radius.
