Drivers in the UK are seeing some relief at the pumps as the sharp rise in fuel prices earlier this year goes into reverse. Petrol and diesel have both fallen in recent weeks, and motoring groups say prices could drop further still if the cost of oil keeps sliding.
A record monthly fall for diesel
Diesel recorded one of its largest monthly declines on record in June, dropping by around 17 pence a litre, according to figures from the motoring group RAC reported by Bloomberg. Petrol also fell, by roughly 8 pence a litre over the same period. The moves have pulled average pump prices back down after they jumped in the spring.
What is driving it
The main factor is the price of crude oil, which spiked during the conflict involving Iran and the disruption to shipping through the Strait of Hormuz, then fell back sharply as those fears eased and supply concerns receded. As wholesale costs come down, they feed through to the forecourt, though usually with a lag.
Competition among retailers is adding to the effect, with larger supermarket chains among those cutting prices, and the RAC has said it expects further reductions in the weeks ahead if wholesale prices continue to fall, as Fleet News reported.
Context for drivers
For households, cheaper fuel offers a modest easing of pressure after a volatile few months, and lower pump prices can also help take some heat out of wider inflation. Still, prices remain above where they sat before this year's oil spike, and campaigners regularly urge retailers to pass on wholesale falls quickly and in full rather than holding prices up. The direction of travel now depends largely on the oil market: if crude stays subdued, drivers should see more of the fall reach the pumps; if tensions flare again, the recent relief could prove short-lived.
