UK petrol price hits highest since Iran war start

The average price of unleaded petrol in the UK has risen to 158.52p per litre, its highest level since the beginning of the Iran war, according to the RAC.

Petrol and diesel prices spiked after the conflict started on February 28, as missile strikes and drone attacks halted or severely disrupted energy production and transportation across the Middle East.

The RAC reported that petrol previously peaked at 158.31p on April 15, then fell by more than a penny until early May, when prices began climbing again.

The motoring organization warned that unleaded petrol is likely to reach at least 160p per litre in the coming weeks unless there is a dramatic and sustained drop in oil prices.

Brent crude, the global benchmark for wholesale oil prices, is currently trading at about $111 per barrel. Before the conflict, Brent was trading at about $73 per barrel.

That increase has pushed up prices at the pump. The average price of unleaded petrol at the start of the conflict was 132.83p per litre.

The average price of diesel at the start of the conflict was 142.38p per litre. It now stands at 185.92p per litre.

Simon Williams, RAC head of policy, said: “The news that petrol has climbed to a new wartime high comes in a week when the chancellor is thought to be on the point of scrapping plans to increase fuel duty by a penny in September.”

“This would have been the first step in reversing the 5p fuel duty cut that’s been in place since the Ukraine war. If she decides to keep fuel duty at the current rate of 52.95p per litre, it will be a relief for drivers as our research shows they have been struggling with the higher cost of filling up.”

The Treasury declined to comment on tax speculation, saying it does not discuss such matters.

Williams said the outlook for diesel was “more positive” as the wholesale price has fallen significantly since its peak in early April.

However, while the price of diesel at the pump has dropped to its lowest since the start of last month, Williams added: “it should really be much lower than it is.”

“We urge retailers to reflect the savings they’re benefiting from when buying new supply on the forecourt,” he said.