The average price of diesel in the UK fell by nearly 17p a litre in June, marking the biggest monthly drop since records began in 2000, according to the RAC. The decline follows a sharp 20% slump in crude oil prices during the same period.
Record monthly fall
Diesel prices dropped from 183.75p per litre at the start of June to 167.14p by month's end, a decrease of 16.6p. Petrol also fell, by 8p a litre, from 159.37p to 151.40p. The RAC attributed the reductions to a deal between the US and Iran that ended the conflict, which had driven oil prices higher.
Impact on drivers and economy
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." However, he noted that prices remain above pre-conflict levels: "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."
Diesel is widely used in the UK economy, particularly for long-haul trucks, buses, and coaches. Lower diesel prices are expected to ease cost pressures on households and businesses. Despite the drop, crude oil is currently trading at $70.70 per barrel, still higher than before the conflict began.
Health and environmental concerns
Diesel exhaust is classified as carcinogenic to humans by the World Health Organisation. A recent study estimated that the Dieselgate scandal caused about 16,000 deaths in the UK and 30,000 cases of asthma in children. Nevertheless, the fuel remains critical for many sectors.
Outlook
Williams added: "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." The RAC expects further modest declines if crude oil continues to fall.
