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cost of living

Published 02 Jul 2026

3 min read

Relief for drivers at last as fuel prices come down

After months of soaring oil prices pushing up the cost of unleaded and diesel, filling up your car is finally getting a bit cheaper.

Relief for drivers at last as fuel prices come down
James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 2 July 2026

According to the RAC, the average price of diesel fell by nearly 17p a litre in June to 167.14p.

That’s the biggest fall in a single month in more than a quarter of a century.

And it means the cost of filling up a typical diesel tank is down from £101.06 to £91.93.

The average price of petrol, meanwhile, fell by 8p a litre to 151.40p.

That takes the cost of filling up a typical 55-litre family car down from £87.65 to £83.27.

Where can I find the biggest savings?

Supermarkets have reduced their prices significantly over the last few weeks.

In fact, diesel pump prices at the big four supermarkets have come down by 19p a litre - more than the national average.

But the cost of unleaded, meanwhile, has come down by just 7p - slightly less than the UK-wide fall.

And while even motorway fuel prices are falling, the price cuts at service stations are slightly smaller than those seen across the whole of the country.

At the same time, many of the cheapest prices were found at smaller forecourts.

For example, GW Holmes of Etherley Moor Garage in Bishop Auckland was named as the place to get the cheapest petrol, with a litre costing just 139.7p.

So the message to drivers is that it could be worth shopping around for the best prices before filling up your car.

You can find real-time petrol and diesel prices on platforms like:

Prices still higher than before Iran war

The cost of petrol and diesel shot up after the US-Israel war with Iran sent oil prices soaring.

But oil prices are starting to come down after the US and Iran reached a deal to end the conflict.

However, the economic impact won’t be undone straight away, so filling up your car is still more expensive than it was before the war started.

When the conflict began in late February, drivers were paying an average of 132p for unleaded and 142p for diesel.

“We’re still some way off those levels,” said Simon Williams of the RAC.

“The cost of the fuel today remains far higher than it was at the start of the war.”

What else can I do to save money on the road?

As well as shopping around for the best fuel prices, there are other steps you can take to keep costs down behind the wheel.

Drive more efficiently

How you drive has a big effect on how much fuel you use, so try to cut consumption by driving efficiently.

For example, you could make a point of accelerating gently, braking gradually and driving in the correct gear

Use loyalty schemes, smartly

Supermarkets and major petrol station chains offer loyalty schemes where you can get a discount on your fuel.

So if you use the same petrol station regularly, it could be worth signing up, especially if it already offers competitive prices.

Look after your vehicle

Good car maintenance makes a big difference to fuel consumption, so make sure it’s serviced regularly, your tyres are at the correct pressure and the wheels are properly aligned.

For more money-saving tips, check out our list of 50 ways to cut your fuel costs.

James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

James has spent almost 20 years writing news articles, guides and features, with a strong focus on the legal and financial services sectors.

Published: 2 July 2026

The information in this post was correct at the time of publishing. Please check when it was written, as information can go out of date over time.

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James Glynn - Money Wellness

Written by: James Glynn

Senior financial content writer

Published: 2 July 2026

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