June marks the end of four months of rising prices at the pumps

Four months of rising fuel prices finally came to an end in June, with both petrol and diesel falling dramatically due to a fall in the wholesale cost of oil.

The average price of unleaded dropped 3p-per-litre from 130.67p to 127.62p while diesel reduced 4.61p from 135.51p to 130.90p. This marks the ninth biggest monthly reduction in the price of a litre of diesel since 2000, according to RAC Fuel Watch data. 

Based on the average UK price of unleaded coming down by 3p-per-litre the cost of filling up a 55-litre family car - like a Ford Focus - fell by £1.68p to £70.19 by the end of June. The saving on a tank of diesel was greater at £2.54, down to £72.

But despite the wholesale price of petrol in the first week of June reaching its lowest point since March, the pump price did not fall as far as it should have done, says the RAC. In stark contrast, when the wholesale price was a similar level in March, unleaded was being sold at 123p a litre – more than 4p cheaper than it was in the last 10 days of June.

"Retailers were clearly banking on the oil price rebounding after its sudden drop which began at the end of May when a barrel was over $70. Inevitably this has meant bad news for drivers who have lost out with pump prices being 4p-a-litre more expensive than they should have been," said RAC fuel spokesman Simon Williams.