UK petrol prices have climbed to their highest level since mid-June, as the US-Israel war with Iran continues to disrupt energy markets. According to data from motoring organisation RAC, the average price of petrol now stands at 156.19p a litre, while diesel costs 173.15p a litre.
The rise follows a surge in wholesale oil prices, which have returned to above $100 (£75) a barrel. Oil prices initially spiked when the conflict began on 28 February, severely disrupting production and transportation across the Middle East. They fell sharply in early July after a framework peace deal was agreed, but have climbed back as tensions resurface.
“UK petrol prices rise to 156.19p a litre as oil costs above $100 due to resurging tensions in Iran war.”
Simon Williams, head of policy at the RAC, said: 'Unless the hostilities end soon, it's hard not to see the price of petrol reaching a new Iran war high.' During the conflict, petrol peaked at 159.53p a litre on 28 May, while diesel hit 191.54p on 15 April. After the deal, prices sank to a low of 150.59p for petrol and 164.52p for diesel in early July.
Despite the recent increases, prices remain below the summer 2022 peaks following Russia's invasion of Ukraine, when petrol reached 191.5p a litre and diesel 199p. Analysts note that every $10 rise in oil adds roughly 7p a litre at the pump, though movements take about a fortnight to show due to slow transport.
Fuel retailers have denied accusations of price gouging during the conflict. 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, Fuel Finder, allows drivers to compare costs across petrol stations. Luke Bosdet, head of policy at the AA, said the group had been surprised at the speed prices fell and attributed it to the scheme.
On 20 May, then Prime Minister Sir Keir Starmer announced a planned 5p increase in fuel duty due in September would be postponed. With oil above $100 and no end to hostilities in sight, drivers face further pain at the pumps.