Petrol hits highest price since start of Iran war

The latest figures indicate that the average price of unleaded petrol has surged to 158.52p per litre, marking the highest level since the onset of the Iran war, as reported by the RAC.

Following the outbreak of the conflict on February 28, petrol and diesel prices experienced significant increases, primarily due to disruptions in energy production and transportation across the Middle East, attributed to missile strikes and drone attacks.

Previously, petrol prices reached a peak of 158.31p on April 15, subsequently decreasing by more than a penny before showing an upward trend again at the beginning of May, as noted by the RAC.

The motoring organization predicts that unleaded petrol prices could escalate to at least 160p per litre in the upcoming weeks, unless there is a "dramatic and sustained drop" in oil prices.

Currently, Brent crude, the global standard for wholesale oil pricing, is trading at approximately $111 per barrel, a sharp increase from its pre-conflict price of about $73 per barrel.

This upward trend in crude oil prices has directly influenced the cost at the fuel pumps, with unleaded petrol averaging at 132.83p per litre at the start of the conflict.

In comparison, diesel prices have also surged, with the average cost now standing at 185.92p per litre, up from 142.38p per litre when the conflict began.

Simon Williams, RAC head of policy, remarked, "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." He added, "This would have been the first step in reversing the 5p fuel duty cut that has been in effect since the Ukraine war. If she opts to maintain fuel duty at the current rate of 52.95p per litre, it will provide some relief for drivers who are currently grappling with the inflated costs of refueling."

The Treasury has refrained from commenting on the speculations concerning tax adjustments.

Williams noted that the outlook for diesel appears "more positive," as the wholesale price has decreased significantly since its peak in early April. However, despite the recent reduction in diesel prices at the pump being the lowest since early last month, he emphasized, "it should really be much lower than it is."

He urged retailers to reflect the savings they gain from new supplies in their pump prices.