UK Petrol Prices Hit New Wartime High as Iran Conflict Drives Up Oil Costs

BBC Business reported Tuesday that petrol prices Iran war pressures have pushed average UK pump costs to a fresh peak of 158.52p per litre, the highest reading since the conflict in the Middle East erupted.

Prices Breach Previous Wartime Peak

The RAC confirmed the figure surpassed an earlier high of 158.31p recorded in mid-April. Prices had briefly softened before resuming their climb at the start of May. The motoring group cautioned that unleaded could reach at least 160p per litre within weeks. That projection holds unless oil markets see a sharp and lasting reversal.

Brent crude, the global benchmark, is currently trading at roughly $111 a barrel, up from around $73 before the conflict began on 28 February. Missile strikes and drone attacks disrupted energy production and transit routes across the region. That supply shock fed directly into retail forecourt pricing across Britain.

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A Year of Rising Costs at the Pump

When hostilities started, average unleaded petrol cost 132.83p per litre. Diesel stood at 142.38p. Since then, unleaded has climbed more than 25p. Diesel has surged even further, now averaging 185.92p per litre.

RAC head of policy Simon Williams told the BBC that retailers buying diesel wholesale are benefiting from recent price reductions. He argued those savings are not being passed on adequately to motorists. He called on forecourt operators to reflect lower wholesale costs in what they charge consumers.

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Fuel Duty Decision Looms for Chancellor

The price spike arrives at a politically sensitive moment. Williams noted that the chancellor is reportedly weighing whether to scrap a planned 1p fuel duty rise scheduled for September. That increase was intended as a first step toward unwinding a 5p duty cut introduced during the Ukraine war.

The current duty rate sits at 52.95p per litre. Williams said maintaining that level would provide meaningful relief for drivers already stretched by wartime fuel inflation. The Treasury declined to comment on the speculation.

On diesel, Williams offered a more measured outlook. Wholesale diesel costs have fallen notably since their early-April peak. Even so, he stressed pump prices remain stubbornly high relative to what supply costs would justify.

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