Fuel prices in the United Kingdom have surged dramatically since the onset of the Iran conflict, reaching a 16-month high for diesel, according to new data. The RAC has reported that the average price of a litre of diesel at UK forecourts has increased by nearly 6p since Saturday, now standing at 148p. This marks the most expensive level since mid-August 2024.
Petrol Prices Also on the Rise
Average petrol prices have not been spared, rising by almost 4p per litre since Saturday to 137p. These increases translate to a £2 hike for filling a typical 55-litre family car with petrol, while diesel car owners face an additional £3.30 per tank. The sharp uptick is directly linked to disruptions in the Middle East, which have triggered a spike in global oil prices.
Oil Market Volatility
Disruption to tanker traffic in the Middle East has sparked a significant rise in oil prices, which heavily influence wholesale fuel costs. The price of Brent crude oil has surged by approximately 21% over the past week, exceeding 88 US dollars (£66) a barrel on Friday. This volatility is a direct consequence of the escalating conflict involving Iran.
Expert Analysis and Projections
RAC head of policy Simon Williams commented on the situation, noting that while wholesale costs for retailers have increased, it typically takes about two weeks for these changes to reflect at the pump. "Brent crude jumped to 85 US dollars (£64) on Thursday, something we haven’t seen since July 2024," Williams stated. He warned that if oil prices remain at this elevated level or climb further, additional forecourt price hikes will be inevitable.
Despite the rapid rate of increase, Williams pointed out that current prices are still considerably lower than the record highs of 2022, when petrol averaged 191.5p and diesel reached 199p per litre. Analysis by the Energy and Climate Intelligence Unit (ECIU) suggests that if oil reaches 100 dollars (£75) a barrel, petrol prices could hit 150p per litre, underscoring the precarious nature of the current market.
Impact on Drivers and Market Response
The AA earlier this week advised drivers that there is "no need to break their refuelling routine," but the latest figures indicate a shifting landscape. The conflict in the Middle East continues to exert pressure on global energy markets, with immediate repercussions for UK consumers. As the situation develops, further fluctuations in fuel prices are anticipated, highlighting the interconnectedness of geopolitical events and domestic economic conditions.
