UK Petrol Prices Hit Wartime High as Iran Conflict Keeps Oil Elevated

BBC Business reported Tuesday that UK petrol prices have climbed to their highest level since the start of the Iran war. The average cost of unleaded now stands at 158.52p a litre, according to motoring group the RAC.

Prices Surpass April Peak as War Disrupts Supply

UK petrol prices had previously topped out at 158.31p a litre on 15 April before pulling back slightly. They began rising again at the start of May and have now exceeded that earlier high. The RAC cautioned that unleaded could reach at least 160p a litre in the weeks ahead. That outcome depends on whether oil markets see a sharp and sustained pullback.

RAC head of policy Simon Williams**** noted the timing is particularly sensitive. The chancellor is reportedly weighing whether to scrap a planned 1p fuel duty increase due in September. That rise would have begun unwinding the 5p duty cut introduced during the Ukraine war. The Treasury declined to address speculation on tax policy. Williams said maintaining the freeze at 52.95p per litre would offer meaningful relief to drivers already strained by elevated pump prices.

Also Read: What Is Brent Crude and Why Does It Matter to You?

How the Iran War Reshaped Oil Markets

The conflict, which began on 28 February, sent immediate shockwaves through global energy markets. Missile strikes and drone attacks disrupted oil production and shipping routes across the Middle East. Brent crude, the international benchmark, traded around $73 a barrel before hostilities started. It now sits near $111 a barrel, a gain of roughly 52%.

The impact at the pump has been stark. Petrol averaged 132.83p a litre when the conflict erupted. Diesel was 142.38p. Diesel has since surged to 185.92p a litre, though Williams described the wholesale picture for diesel as more encouraging than for petrol.

Diesel Improving but Retailers Under Pressure

Wholesale diesel costs have fallen considerably since their early-April peak. However, Williams argued that forecourt prices have not reflected those savings adequately. He called on fuel retailers to pass lower wholesale costs on to consumers more quickly. The gap between what retailers pay for new supply and what drivers pay at the pump has drawn mounting criticism.

Oil analysts cited by the BBC expect Brent to remain above $100 for the remainder of 2026, limiting the prospect of significant near-term relief for UK motorists.

Read Next: Oil Price Predicted to Stay Above $100 for Rest of Year