Will fuel prices come down after US-Iran ceasefire plan?

With the US and Iran agreeing to a conditional two-week ceasefire, many of us will now be asking one key question - will petrol and diesel prices start to fall?

Well, probably not any time soon.

Iran blocked the Strait of Hormuz - a key shipping route for oil supplies - after US and Israeli airstrikes began at the end of February.

About one-fifth of the world’s oil supply passes through the Strait, so the blockage led to oil prices soaring - and that in turn, pushed up fuel prices for motorists.

But Iran has now agreed to reopen the Strait of Hormuz as part of the ceasefire deal - a move that’s led to oil prices falling and stock markets rising.

And it also means more oil tankers will be able to pass through the waterway, easing potential supply issues.

So why won’t pump prices come down?

A two-week conditional ceasefire isn’t a lasting peace deal and we don’t know for sure if it will hold.

There’s also the fact that key energy infrastructure across the Middle East has been damaged throughout the conflict, so it could take some time for oil production to resume.

And on top of that, oil prices are much higher than they were before the war started, rising from about $70 a barrel in late February to almost $100 a barrel today.

Motorists will be all too familiar with petrol stations being quick to increase prices during times of economic volatility, but slow to cut them when the situation improves.

So even in the best-case scenario, it could be a few weeks before pump prices start to drop meaningfully.

How much more are drivers paying at the pumps?

According to the RAC, the average cost of filling a 55-litre family car with petrol has increased by £13 since the start of the Iran war.

Diesel, meanwhile, has gone up by £26.

Demand for fuel soared during the recent Easter weekend - and inevitably, that was reflected at the pumps.

Over the bank holiday weekend, the cost of petrol rose by 2.6p a litre to 157.02p, and diesel by 4.2p to 189.42p.

"Drivers - particularly those who rely on diesel which is up by a third since the start of the conflict - are facing a torrid time,” said RAC head of policy Simon Williams.

How can I cut my fuel costs?

While global geopolitical events are beyond our control, there are still a few practical ways to cut how much you spend on fuel.

For example, you can compare real-time fuel prices on platforms like:

• Confused.com
• DriveScore
• Fuel Finder UK
• Fuel Spy
• MotorMouth
• PetrolPrices.com
• RAC Fuel Watch 

That means you can easily shop around for the best deals on petrol and diesel in your area, rather than run the risk of being overcharged.

Your driving style also directly affects how much fuel you use, so accelerate and brake gently if you want to keep consumption down, and make sure you’re driving in the correct gear.

We’ve put together a list of 50 ways to cut your fuel costs, so you can start saving money on the road straight away.