Diesel drivers in England have received a major boost as the average price of diesel fell nearly 17p a litre in June, setting a new record for the biggest monthly drop since 2000, according to analysis of RAC Fuel Watch data. However, drivers are still facing high costs, with a typical tank costing £91.93.
Record Monthly Drop in Diesel Prices
At the start of June, diesel averaged 183.75p per litre, but by the end of the month it had tumbled 16.6p to 167.14p. This exceeded the previous largest drop in a calendar month by almost 5p (4.69p). The prior record was a 11.92p drop in May 2023, which occurred nearly a year after the start of the war in Ukraine sent oil prices soaring.
Petrol Prices Also Fall
The average price of petrol also reduced by 8p a litre (7.97p) in June, marking the seventh greatest monthly fall in 26.5 years, falling from 159.37p to 151.40p. This has saved petrol car drivers £4.40 per tank on a typical 55-litre family car, reducing the cost from £87.65 to £83.27. The diesel saving is even greater, with a full tank now £9 less than at the start of the month – £91.93, down from £101.06.
RAC Policy Chief Comments on Factors
RAC head of policy Simon Williams 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.” He added: “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.”
Oil Price and Pre-Conflict Comparison
Williams noted: “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.”
Cheapest Fuel Prices in England
Although supermarkets have reduced their prices significantly, it is 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, matched by two Sainsbury’s sites also in the city. However, Northern Ireland leads the way with the cheapest average prices – petrol averaging 147.5p and diesel 162.6p.
Fuel Finder Scheme Impact
Williams expressed hope that the transparency provided by the Government’s Fuel Finder scheme, which requires retailers to report their prices within half an hour of changing, has helped with June’s price reductions.
