UK petrol and diesel prices have climbed to their highest level since mid-June, according to motoring organisation RAC, as the US-Israel war with Iran continues to squeeze drivers’ finances. The average price of petrol now stands at 156.19p a litre, while diesel has risen to 173.15p a litre – a sharp rebound from the lows of early July, when petrol sank to 150.59p and diesel to 164.52p.
The rises track the wholesale price of oil, which has surged back above $100 a barrel after a brief respite. When the conflict began on 28 February, Brent crude – the global benchmark – spiked from around $70 to above $120, sending petrol to a wartime peak of 159.53p on 28 May and diesel to 191.54p on 15 April. Prices then nosedived after the US and Iran agreed a framework deal in June, almost returning to pre-war levels. But with tensions resurfacing, Brent has climbed back above $100.
“UK petrol and diesel prices rise to highest since mid-June as oil returns to $100 a barrel amid Iran war.”
Simon Williams, head of policy at the RAC, warned: “Unless the hostilities end soon, it’s hard not to see the price of petrol reaching a new Iran war high.” Analysts calculate that every $10 increase in oil pushes pump prices up by roughly 7p a litre. Because transporting oil is slow, wholesale movements take about a fortnight to show at the forecourt.
Fuel retailers have denied accusations of price gouging during the conflict, and the official markets regulator said it had “not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis”. A government scheme called Fuel Finder lets drivers compare local prices. Luke Bosdet, head of policy at the AA, said the group had been surprised at the speed prices fell in July and attributed it to the scheme.
Despite the recent rises, petrol and diesel remain below the record levels of summer 2022 following Russia’s invasion of Ukraine, when petrol hit 191.5p and diesel 199p. On 20 May, then Prime Minister Sir Keir Starmer said a planned 5p increase in fuel duty, due in September, would be postponed. The next few weeks will determine whether the pump price trend follows oil’s path – or breaks it.