UK Fuel Prices Drop After US-Iran Peace Deal

UK fuel prices are gradually declining following a peace deal between the United States and Iran, which has allowed the Strait of Hormuz to reopen to tankers. This diplomatic resolution has pushed the price of oil below 73 US dollars a barrel, leading to lower costs at forecourts compared to war-time peaks.

Average petrol prices currently stand at 152.9p per litre, down from the April 16 peak of 159.7p. Diesel has fallen to 170.5p per litre from a peak of 192.4p. Despite these drops, costs remain significantly higher than they were before the conflict began on February 28, with petrol and diesel remaining 20p and 28p more expensive per litre, respectively.

Representatives from the AA and RAC expect further declines, with petrol potentially dropping below 150p per litre. However, these organizations emphasize that such savings depend on retailers passing wholesale price reductions directly to consumers.