Drivers are being warned there is “some way to go” before fuel prices match the cost of oil in returning to pre-Middle East war levels.
The AA said the average cost of a litre of petrol and diesel at UK forecourts is 152.9p and 170.5p respectively.
That is below the war-time peaks of 159.7p for petrol and 192.4p for diesel, set on April 16.
But petrol remains about 20p more expensive than before the conflict, and the price of diesel about 28p higher.
The cost of oil, which is a major influence on fuel prices, fell to below 73 US dollars a barrel for the first time since the Iran war started 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.”
RAC head of policy Simon Williams said the average price of petrol should fall below 150p per litre “in the next week or so”, while a litre of diesel “ought to go back under 160p”.
He added: “We urge retailers to pass on the savings they’re benefiting from on the wholesale market to drivers straightaway.”
