UK petrol prices reach highest level of Iran oil crisis

(Alliance News) - Petrol prices in the UK have eclipsed the previous highest level of the Iran oil crisis, new figures show.

The RAC said the average price of a litre of petrol at UK forecourts stands at 158.5 pence, which is the most expensive it has been since December 2022.

Following the beginning of the conflict in the Middle East on February 28, the price peaked at 158.3p on April 15.

The average price then fell by more than a penny per litre until the start of May, when it began rising again.

RAC head of policy Simon Williams described the recent rise as "bad news for drivers ahead of the bank holiday" and warned prices are set to become even more expensive.

He said: "RAC analysis of wholesale fuel data unfortunately indicates that unleaded is now likely to increase to at least 160p a litre in the coming weeks, unless there's a dramatic and sustained drop in the price of oil which has been above 100 US dollars a barrel since late April.

"It's a more positive outlook for diesel as the wholesale price has reduced significantly since it peaked in early April.

"While the price of diesel at the pump has fallen nearly 6p to 185.92p – its lowest price since the start of last month – it should really be much lower than it is.

"We urge retailers to reflect the savings they're benefitting from when buying new supply on the forecourt."

It has been widely reported that on Thursday Chancellor Rachel Reeves will abandon her plan to increase fuel duty from September.

She previously announced in her November 2025 budget that the 5p per litre fuel duty reduction – introduced by the Conservative government in March 2022 – would be extended until the end of August 2026, with rates then gradually returning to previous levels over the next five years.

Motoring research charity the RAC Foundation estimates rises in pump prices since the conflict in the Middle East began have led to motorists paying an additional GBP2.9 billion.

The figures are based on average daily pump price rises and last year's fuel consumption rate.

By Neil Lancefield, Press Association Transport Correspondent

Press Association: Finance

source: PA

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