Average UK petrol prices have climbed to their highest point since the beginning of the Iran war, as rising oil costs continue to affect drivers across the country. According to the RAC, unleaded petrol reached an average of158.52p per litre this week.
The increase follows months of instability in global energy markets after missile strikes and drone attacks disrupted oil production and transportation routes in the Middle East. Diesel prices also remain elevated, although wholesale costs have recently started to ease.
The latest figures highlight the continuing pressure on household transport costs at a time when the government is reportedly reconsidering a planned fuel duty increase. According to the RAC, petrol prices are likely to rise further in the coming weeks unless oil prices fall significantly and remain lower for a sustained period.
The surge in fuel prices has closely mirrored the rise in crude oil costs since the conflict began on February 28. Brent crude, which serves as the international benchmark for oil prices, is currently trading at around $111 per barrel. Before the outbreak of the conflict, the price stood at approximately $73 per barrel.
Oil Market Disruption Pushes Fuel Prices Higher
According to the RAC, average unleaded petrol prices stood at 132.83p per litre at the start of the conflict. Since then, prices have steadily increased, peaking at 158.31p on April 15 before briefly declining by more than a penny during late April.
That short-lived decrease reversed at the beginning of May, when prices started rising again. The RAC said the average cost of unleaded fuel has now surpassed the previous wartime peak, reaching 158.52p per litre. Diesel prices have followed a similar trend. At the start of the conflict, average diesel prices were recorded at 142.38p per litre. They have since climbed to 185.92p per litre, reflecting the wider increase in wholesale fuel costs linked to supply disruptions in the Middle East.
According to reports, the interruptions to production and transportation infrastructure have reduced the flow of energy supplies across the region. The conflict has affected both extraction facilities and transport routes, contributing to tighter global supply conditions and higher prices at fuel stations. The RAC also warned that petrol could rise to at least 160p per litre unless there is what it described as a “dramatic and sustained drop” in oil prices.
Government Fuel Duty Plans Remain Under Scrutiny
The increase in fuel prices comes as speculation grows over the government’s position on fuel duty. Simon Williams, head of policy at the RAC, said reports suggest the chancellor may abandon plans to raise fuel duty by one penny per litre in September.
According to Williams, the proposed increase would have marked the first move toward reversing the temporary 5p fuel duty cut introduced during the Ukraine war. He said maintaining the current duty rate of 52.95p per litre would provide relief for motorists already struggling with higher refueling costs.
“The news that petrol has climbed to a new wartime high comes in a week when the chancellor is thought to be on the point of scrapping plans to increase fuel duty by a penny in September,” Williams said.
The Treasury has not confirmed whether the increase will go ahead, stating only that it does not comment on tax speculation. Williams also noted that the outlook for diesel prices appears “more positive” because wholesale diesel costs have fallen significantly since reaching a peak in early April. Even so, he argued that retail diesel prices should already be lower than they currently are and urged fuel retailers to pass savings on to consumers at the pump.
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