Filling up a car in the UK is getting more expensive again, with petrol prices climbing to their highest since mid-June as the US-Israel war with Iran continues to disrupt global energy markets.
According to data from the motoring organisation RAC, the average cost of a litre of petrol now stands at 156.19p, while diesel has risen to 173.15p. The increases follow a steady rise in wholesale oil prices, which have climbed back above $100 (£75) a barrel after a brief lull.
“UK petrol prices rise to 156.19p/litre as oil tops $100 amid US-Israel war with Iran.”
The conflict erupted on 28 February, sending oil prices soaring as fighting severely hit production and transport across the Middle East. Prices then plunged in early July when the US and Iran agreed a framework deal to end the fighting. But tensions have resurfaced, pushing Brent crude back above $100 a barrel.
Simon Williams, head of policy at the RAC, warned drivers to brace for further pain. “Unless the hostilities end soon, it's hard not to see the price of petrol reaching a new Iran war high,” he said.
During the conflict’s initial peak, petrol hit 159.53p a litre on 28 May, while diesel reached 191.54p on 15 April. After the framework deal, prices fell to 150.59p for petrol and 164.52p for diesel in early July – but the relief has proved temporary.
Analysts calculate that every $10 (£7.53) increase in the oil price 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.
Despite the rises, current prices remain below the record levels of summer 2022, when petrol hit 191.5p a litre and diesel 199p following Russia’s invasion of Ukraine.
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”.
AA head of policy Luke Bosdet expressed surprise at how quickly prices had fallen after the framework deal, attributing the drop to the government’s Fuel Finder scheme, which lets drivers compare petrol station prices. On 20 May, then prime minister Sir Keir Starmer postponed a planned 5p increase in fuel duty due in September.
With oil prices volatile and no end to the Iran war in sight, the RAC’s warning suggests the cost of driving may soon test new highs.