Oil prices declined this week as optimism grew regarding the potential reopening of the Strait of Hormuz following discussions of a peace agreement between the US and Iran. Tehran and Washington are anticipated to finalize the deal in Burgenstock, Switzerland on Friday, although specific details have not yet been disclosed.
US President Donald Trump announced that Iran has committed to never possessing nuclear weapons and that the Strait of Hormuz will promptly resume operations without toll charges. The price of Brent crude dropped below $80 per barrel, spurred by the prospect of the vital shipping route returning to service. During the Iran conflict, oil prices had surged above $120.
The RAC predicts that the continuous drop in oil prices will bring relief to drivers who have been grappling with steep petrol and diesel costs in recent months. Unleaded petrol currently averages 155.45p per litre, down from its peak of 159.53p on May 28 during the Iran crisis. Diesel prices have also decreased to an average of 175.86p per litre from a high of 191.54p per litre on April 15.
Simon Williams, head of policy at RAC, foresees potential further reductions in fuel prices at the pumps within the next two weeks. He mentioned that if oil stabilizes around $85, a level unseen since March, petrol prices could drop to 148p per litre from the current average of 156p, while diesel could fall below 160p from its current average of 177p.
Motorists are encouraged to leverage driving apps to compare fuel prices effectively and maximize savings. UK forecourts are now mandated to promptly update price changes to a Fuel Finder database, which then shares this information with various apps like Confused.com, DriveScore, Fuel Finder UK, Fuel Spy, MotorMouth, PetrolPrices.com, RAC Fuel Watch, and the AA for motorists to make informed price comparisons.
Chancellor Rachel Reeves has emphasized to petrol retailers the importance of maintaining affordable prices for drivers, stressing a collective responsibility to offer relief amid the ongoing decrease in oil prices.
