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Cost Efficiency

Diesel prices see biggest monthly fall in more than 25 years

The average price of diesel fell by 16.6p a litre during June.

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Diesel prices recorded their biggest monthly fall since records began in 2000 during June, while petrol prices also posted one of their largest monthly declines on record, according to RAC Fuel Watch data.

The average price of diesel fell by 16.6p a litre during the month, dropping from 183.75p at the beginning of June to 167.14p by 30th June.

The RAC said this surpassed the previous record monthly fall of 11.92p, recorded in May 2023.

Petrol prices also fell sharply, declining by 7.97p a litre from 159.37p to 151.40p, making it the seventh largest monthly reduction in the last 26 and a half years.

The RAC said the reductions were driven by a fall in the oil price, 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.

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For motorists, the lower prices reduced the cost of filling a typical 55-litre petrol car by £4.40, from £87.65 to £83.27.

Diesel drivers saw an even bigger saving, with the cost of a full tank falling by around £9, from £101.06 to £91.93.

The biggest reductions for diesel were seen at the major supermarkets, where average prices fell by 19p a litre from 182.37p to 163.28p. Supermarket petrol prices fell by 7.15p a litre over the same period.

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Motorway fuel prices also declined, with petrol falling by 8.11p a litre from 179.78p to 171.67p, while diesel dropped by 13.83p from 201.07p to 187.24p.

Northern Ireland continued to record the UK’s lowest average fuel prices at the end of June, with petrol averaging 147.5p a litre and diesel 162.6p.

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Simon Williams, head of policy at the RAC, 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.

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“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.

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“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 at 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.”

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