The RAC says it now costs £83.59 to fill up a 55-litre family car with petrol and £92.75 for diesel, However, this is still £10.50 and £14.40 respectively more than it did at the end of February before the conflict began.
The RAC’s head of policy, Simon Williams, said: “Fuel prices are falling steadily in reaction to the drop in the price of oil and wholesale petrol and diesel costs which is good news for drivers who’ve had a torrid time at the pumps this year.
“But our analysis of wholesale data shows the reduction should be faster and greater, particularly for diesel. Drivers really ought to see average prices of below 150p for unleaded and below 160p for diesel in the next week or so.”
Despite the conflict, petrol and diesel prices remained below the levels reached in the summer of 2022 following Russia’s invasion of Ukraine, when petrol reached 191.5p a litre and diesel hit 199p.
Because transporting oil is a slow process, price movements in the wholesale markets take about a fortnight to show at the pump.
Fuel retailers have denied accusations of price gouging during the conflict. The official markets regulator said it had “not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis”.
A government scheme called Fuel Finder, external lets drivers compare the cost of fuel offered by petrol stations across the UK.
Luke Bosdet, the head of policy at the AA, said the group had been surprised at the speed that prices had fallen and put it down to the scheme.
On 20 May Prime Minister Sir Keir Starmer said a planned 5p increase in fuel duty due in September would be postponed until 31 December because of the conflict.
No evidence of widespread fuel price-gouging, watchdog says
Published1 May
Drivers can compare fuel prices at different petrol stations – how does it work?
Published2 February
Why has the Iran war had a big impact on oil prices?
The Middle East conflict sent global oil prices soaring as it effectively closed the Strait of Hormuz – one of the world’s key water transport routes for oil, liquid natural gas and other essential commodities – limiting global supplies.
About 20% of the world’s oil and liquefied natural gas normally passes through the waterway.
Despite the deal between the US and Iran, experts warn a return to normal levels of shipping through the Strait of Hormuz will take time, and the impact of the war will continue to affect the global economy for potentially months to come.
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