UK diesel prices recorded their biggest monthly fall on record in June, according to the RAC, after a sharp drop in crude oil prices fed through to forecourts.

The average price of diesel fell by almost 17p a litre during the month, dropping from 183.75p at the start of June to 167.14p by the end. The 16.6p fall was the largest single-month reduction recorded by the RAC since 2000.

Petrol prices also fell, with the average price down by nearly 8p a litre, from 159.37p to 151.40p.

The reductions followed a steep fall in crude oil prices, which dropped by around 20% in June. Oil was trading at about $70.70 a barrel, lower than before the conflict between Iran and Israel began.

Simon Williams, the RAC’s head of policy, said June had been “a far better month for drivers” after the announcement of a deal between the US and Iran to end the conflict. He said the fall in oil prices had been reflected at the pumps.

Lower diesel prices could help ease cost pressures for households and businesses. Diesel remains widely used across the UK economy, particularly by haulage firms, logistics operators, buses, coaches and some motorists.

However, diesel continues to raise health and environmental concerns. Diesel engine exhaust is classed as carcinogenic by the World Health Organisation, while the Dieselgate scandal has been linked to thousands of premature deaths and cases of childhood asthma.

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