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 point since the Iran war began, with the average cost of unleaded reaching 158.52p a litre according to motoring organisation the RAC.

Prices Breach Previous Wartime Peak

The latest reading edges past the prior high of 158.31p recorded on 15 April. Prices had dipped slightly after that peak before resuming their climb at the start of May. The RAC now warns that unleaded could hit at least 160p a litre in the weeks ahead. That outcome depends on whether oil markets see what the organisation described as a dramatic and sustained pullback in crude prices.

RAC head of policy Simon Williams told BBC Business that drivers have been visibly struggling with the cost of filling up. He linked the new record to a broader environment of elevated energy costs tied directly to the ongoing conflict.

How the Iran War Reshaped UK Fuel Costs

When hostilities began on 28 February, petrol averaged 132.83p a litre and diesel sat at 142.38p. The conflict disrupted production and shipping lanes across the Middle East through missile strikes and drone attacks. Brent crude, the global benchmark, has since risen from roughly $73 a barrel to around $111. That jump of more than 50% has fed directly into forecourt prices. Diesel has fared even worse over the period, now averaging 185.92p a litre.

Fuel Duty Decision Looms for Chancellor

Williams noted the price spike coincides with a critical policy moment. The chancellor is reportedly weighing whether to proceed with a planned 1p fuel duty increase in September. That rise was intended as the first step toward unwinding a 5p cut introduced during the Ukraine war, which left the duty rate at 52.95p per litre. Scrapping the planned increase would offer modest relief for motorists already under pressure. The Treasury declined to comment on the speculation.

Also Read: What’s Happening to UK Petrol and Diesel Prices? (BBC)

Diesel Outlook Offers a Sliver of Relief

On diesel, Williams offered a more measured message. Wholesale diesel costs have fallen meaningfully since their early-April peak, yet pump prices have not tracked that move lower with the same speed. He called on fuel retailers to pass on the savings they are realising when replenishing stock, arguing the gap between wholesale and retail diesel remains wider than it should be.

Oil analysts widely expect Brent to remain above $100 for the rest of the year, keeping pressure on household budgets across the UK.

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