UK Fuel Prices Under Pressure as Hormuz Crisis Drags On
BBC Business reported Tuesday that UK petrol prices have resumed climbing after a brief pause, with the motoring group RAC warning that further rises at the forecourt are now almost unavoidable.
Prices Briefly Dipped, Then Reversed
Petrol and diesel costs surged from the moment hostilities between the US, Israel, and Iran erupted on 28 February. Brent crude rocketed from roughly $73 a barrel to as high as $126, its steepest level since Russia’s full-scale Ukraine invasion. That translated into a £14 increase to fill a typical petrol car and a £27 jump for a diesel equivalent. Prices peaked at 158.3p per litre for petrol and 191.5p for diesel before easing slightly from 16 April onward, ending a 46-day run of consecutive daily increases, the longest on record. By 5 May, petrol sat at 157.2p and diesel at 188.3p — still historically elevated.
Wholesale Costs Signal More Pain Ahead
RAC head of policy Simon Williams told BBC Business the near-term outlook was “ominous.” Wholesale petrol and diesel prices jumped around 5p per litre in a single week, reaching their highest point since the conflict began. Analysts estimate that each $10 move in crude oil adds roughly 7p per litre at the pump. Because shipping crude is slow, wholesale moves typically take around two weeks to reach forecourts.
Background: Why Hormuz Drives Everything
The Strait of Hormuz normally carries approximately 20% of global oil and liquefied natural gas. It has been effectively shut since February. A temporary ceasefire triggered a brief oil price retreat, but BBC Verify analysis shows only a handful of vessels have transited the waterway since the pause, against a normal daily figure of around 138 ships. US President Donald Trump announced that American forces would escort cargo vessels through the strait under “Project Freedom.” Iran has countered that any crossing requires its explicit consent. Meanwhile, oil and gas infrastructure across the Gulf has sustained significant damage, cutting regional refining capacity sharply. The UAE has blamed Iran for strikes on its Fujairah storage zone, one of the largest oil depots in the Middle East.
Supply Buffers and Government Reassurances
The UK draws the bulk of its oil and gas imports from the US and Norway, and is insulated from an immediate shortage. Chancellor Rachel Reeves confirmed in April that domestic petrol, diesel, and jet fuel supplies remained adequate. As an IEA member, the UK is required to hold 90 days of net import reserves and currently exceeds that threshold. Even so, fuel costs remain structurally elevated, and a new government tool now allows drivers to compare live pump prices across UK stations.
Read Next: What the Iran Ceasefire Means for Global Energy Markets
