Fuel prices at UK pumps have seen their first decline since the onset of the conflict between the US and Iran, providing a minor reprieve for households struggling with a record-breaking cost-of-living crisis.
According to the RAC, petrol and diesel prices began to ease on Thursday and Friday following a period of extreme volatility.
The shift comes as wholesale costs retreat from recent peaks, largely triggered by the temporary ceasefire announced earlier this month. Diesel has dropped by 0.6p to just under 191p per litre, while petrol fell 0.3 to around 157 per litre.
Prices previously skyrocketed due to the six-week closure of the Strait of Hormuz, a critical maritime corridor. This pushed Brent crude from $70 a barrel to a peak of over $119 in mid-March.
Oil has since retreated back below the $100 mark. “We’re hopeful there will be further reductions amounting to several pence a litre in the coming days,” said Simon Williams, head of policy at the RAC.
“After record price rises, drivers will be relieved to finally see prices going the other way.”
Despite the slight dip, filling a car remains significantly more expensive than earlier this year. A full tank of diesel is currently £26 higher than in late February, while petrol costs £14 more.
Data from the Office for National Statistics (ONS) underscores a sharp spike in public concern. In line with the current situation, 75% of people now cite fuel prices as a primary reason for increased living-costs, up from just 38% in February.
Experts at the Work Foundation warn that stagnant wage growth has left low-income and insecure workers with little buffer against these global economic shocks.
The RAC anticipates further price cuts in the coming weeks, provided wholesale markets remain stable.
Historically, every $10 movement in the price of crude oil translates to a roughly 7p change at the pump, suggesting that if oil continues its stay below $100, the downward trend for UK motorists will continue.
