UK drivers are being cautioned that it will take “some way to go” for fuel prices to align with the significant drop in oil costs, which have now returned to pre-Middle East conflict levels.
The AA reports that the average price for a litre of petrol at UK forecourts stands at 152.9p, with diesel at 170.5p.
While these figures are below the April 16 peaks of 159.7p for petrol and 192.4p for diesel, motorists are still paying approximately 20p more for petrol and 28p more for diesel than before the conflict began.
This disparity comes as the price of oil, a key determinant of fuel costs, dipped below 73 US dollars a barrel for the first time since the Iran war commenced on February 28.
This comes as more tankers pass through the crucial Strait of Hormuz, which is reopening gradually after the US-Iran peace deal.
AA president Edmund King said: “While drivers have been pleasantly surprised by the speed of price falls at the pump, there is some way to go before prices return to where they were before the outbreak of the war.”
Mr King claimed some drivers will fear “prices could go the other way” because of “uncertainty” over the future actions of Iran and the US.
He added: “The hope is that pump prices continue to tumble with the summer getaway late in July now coming into view.”
The fall in oil prices comes as traders increasingly bet that a surge in crude supplies could outweigh lingering geopolitical risks in the Middle East.
Hopes of a lasting peace agreement between Washington and Tehran continue to improve market sentiment. Progress in negotiations has encouraged more oil tankers to resume voyages through the strategically vital Strait of Hormuz, easing concerns over supply bottlenecks.
Shipping data indicates traffic through the waterway has rebounded strongly. According to MarineTraffic figures reported by CNN, vessel movements through the Strait of Hormuz doubled over the past 24 hours to reach their highest level since late February.
Brent crude, the international benchmark, dropped as low as $72.24 a barrel on Thursday, slipping beneath the $72.48 closing price recorded on the eve of US and Israeli strikes against Iran in late February.
The decline marks a dramatic reversal from the sharp price spikes seen during the conflict, which raised fears of severe disruption to global energy markets.
The price of a barrel of oil peaked at $120 in April, well below the worst forecasts of some analysts.
Motoring groups say it usually takes about ten days for oil price falls to feed into the price at petrol pumps.
