The AA has warned drivers that there remains “some way to go” before fuel prices at UK forecourts return to levels seen before the outbreak of the Iran war, despite a significant drop in the cost of oil.
Current Fuel Prices
According to the AA, the average cost of a litre of petrol is currently 152.9p, while diesel stands at 170.5p. These figures represent a decline from the war-time peaks recorded on April 16, when petrol reached 159.7p per litre and diesel hit 192.4p. However, petrol remains approximately 20p more expensive than before the conflict began, and diesel is about 28p higher.
Oil Price Drop
The cost of oil, a key driver of fuel prices, has fallen below 73 US dollars a barrel for the first time since the Iran war started on February 28. This decline is attributed to an increasing number of tankers passing through the Strait of Hormuz, which is gradually reopening following the US-Iran peace deal.
AA President's Statement
AA president Edmund King commented: “While drivers have been pleasantly surprised by the speed of price falls at the pump, there is some way to go before prices return to where they were before the outbreak of the war.” He added that some drivers may fear “prices could go the other way” due to “uncertainty” over future actions by Iran and the US. King expressed hope that “pump prices continue to tumble with the summer getaway late in July now coming into view.”
RAC's Forecast
RAC head of policy Simon Williams predicted that the average price of petrol should fall below 150p per litre “in the next week or so,” while diesel “ought to go back under 160p.” He urged retailers to “pass on the savings they’re benefiting from on the wholesale market to drivers straightaway.”
