UK Petrol Price Hits Wartime High as Iran Conflict Keeps Oil Elevated

UK petrol prices have climbed to their highest point since hostilities broke out with Iran, BBC Business reported Tuesday, citing data from the RAC showing the average cost of unleaded reached 158.52p a litre.

Wartime High Pushes Pump Prices to New Peak

The petrol price wartime high eclipses the previous peak of 158.31p recorded on 15 April. Prices briefly eased by over a penny before resuming their climb at the start of May. The RAC now warns that 160p per litre is likely within weeks. That would only reverse if there is a sharp and lasting fall in crude prices, the motoring group said.

Brent crude, the global oil benchmark, is currently trading at around $111 a barrel. That compares with roughly $73 a barrel before the Iran conflict began on 28 February. Missile strikes and drone attacks have disrupted both the production and movement of energy across the Middle East, squeezing global supply.

Also Read: Oil Price Predicted to Remain Above $100 for Rest of Year

How the Conflict Changed the Cost of Filling Up

When the Iran war started, drivers were paying an average of 132.83p a litre for petrol. Diesel stood at 142.38p. Since then, diesel has surged to 185.92p a litre, a rise of more than 43p. The RAC’s head of policy, Simon Williams, said the wholesale price of diesel had fallen significantly since its early-April peak. However, he argued pump prices were not reflecting those savings quickly enough, calling on retailers to pass on their lower buying costs to consumers.

Also Read: Warning Higher Europe Air Fares ‘Inevitable’ Due to Iran War

Fuel Duty Decision Looms for Chancellor

The record fuel costs arrive at a politically sensitive moment for the Treasury. Williams noted that the chancellor is reportedly weighing whether to scrap a planned 1p increase in fuel duty scheduled for September. The current rate of 52.95p per litre has been in place since it was cut by 5p during the Ukraine war period. Keeping duty frozen would offer modest relief, the RAC said, given that its own research shows drivers are already struggling with the elevated cost of filling up. The Treasury declined to comment on the speculation.

The RAC’s outlook for diesel is comparatively less alarming, with wholesale prices easing. But with Brent crude still well above $100, any meaningful reprieve at the forecourt remains some distance away.

Read Next: What the Iran War Means for Global Energy Markets