Taxi drivers and motorist handed average £9 FUEL BOOST as diesel prices plunge at record pace
- Perry Richardson
- 4 minutes ago
- 3 min read
The average price of diesel fell by almost 17p per litre during June, marking the largest monthly reduction in UK pump prices since 2000, according to new RAC Fuel Watch analysis.
Diesel prices dropped from an average of 183.75p per litre at the start of June to 167.14p by 30 June, a fall of 16.6p. The reduction surpassed the previous record monthly fall by almost 5p, beating the 11.92p decline recorded in May 2023 following the disruption to global oil markets after the war in Ukraine.
Petrol prices also declined sharply, falling 7.97p per litre from 159.37p to 151.40p. The decrease ranks as the seventh largest monthly fall over the last 26 and a half years. For motorists, the lower prices mean filling a typical 55-litre petrol car now costs £83.27, down from £87.65 at the beginning of the month. Diesel drivers have seen an even greater saving, with the cost of a full tank falling from £101.06 to £91.93.
The RAC said the reductions were driven by a significant fall in crude oil prices, with a barrel dropping from $94.98 at the start of June to $72.92 by the end of the month following a deal between the US and Iran to end the conflict. The sustained decline in wholesale costs has flowed through to forecourt prices across the UK.
For taxi operators and other high-mileage businesses, the record fall in diesel prices will provide a welcome reduction in day-to-day operating costs. The biggest savings were seen at the major supermarkets, where average diesel prices fell by 19p per litre to 163.28p. Motorway fuel prices also eased, although diesel remained significantly more expensive than the UK average at 187.24p per litre.
The RAC’s data also indicates that while the UK-wide average petrol price finished June at 151.40p per litre, the most common forecourt price was slightly lower at 149.9p. Diesel showed the opposite trend, with the most commonly displayed price standing at 169.9p per litre, above the national average of 167.14p.
Simon Williams, RAC head of policy, said: “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.
“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.
“Fortunately, the oil price is now in the low-$70s range which is only $10 above the average of the first two months of the year. At the time the conflict began drivers had average prices of 132p for unleaded and 142p for diesel, so we’re still some way off those levels.
“As things stand, petrol should dip under 150p soon and diesel ought to get to below 160p but we would need the price of oil to fall further to see a return to the pre-conflict prices.
”Although the supermarkets have reduced their prices significantly it’s often the case that smaller forecourts have the cheapest prices. In England, the lowest priced petrol is currently being sold by GW Holmes of Etherley Moor Garage in Bishop Auckland at 139.7p. The best diesel price appears to be 152.9p Linthouse Lane Service Station in Wolverhampton, which is matched by two Sainsbury’s sites also in the city.
“But it’s still Northern Ireland that leads the way with the cheapest average prices – here, the average price of petrol is already 147.5p and diesel 162.6p.
“We hope the transparency the Government’s Fuel Finder scheme brings with retailers obligated to report their prices within half an hour of changing has helped with June’s price reductions.”
