UK Fuel Prices Surge Amid US-Iran Tensions, Approaching 160p Per Litre
Escalating conflict between the United States and Iran has driven up global oil prices, leading to the highest petrol costs in the UK since the hostilities began.
Petrol prices in the UK are projected to reach 160 pence per litre this week, marking the highest point since the onset of the current conflict between the United States and Iran. The increase follows nearly two weeks of escalating strikes and reciprocal attacks between the two nations.
Over the weekend, petrol prices rose by 0.6 pence to an average of 157.81 pence per litre, while diesel increased by 1 pence to 175.71 pence per litre, according to RAC data. Simon Williams, RAC head of policy, stated that petrol has already seen an increase of over 6.5 pence per litre and diesel by 9 pence since the beginning of July. This translates to an additional £3.50 and £5, respectively, for filling up a family car.
"The outlook for drivers is pretty grim," Williams commented. "It looks highly likely now that petrol will hit 160p a litre – its highest level since the United States/Iran conflict began – and diesel 180p by the end of this week, off the back of an elevated oil price."
The cost of fuel at the pump is closely tied to the global oil price, which has seen an upward trend since the ceasefire between the US and Iran ended. Brent crude oil reached $102 a barrel on July 23 before settling at $92 on July 27, still approximately 30 percent higher than its price on July 1.
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Diesel prices are experiencing a faster rise than petrol partly due to the UK's significant reliance on diesel imports and an increased demand for US diesel. Previously, diesel hit a high of 191.54 pence per litre on April 15, and petrol reached 159.53 pence per litre on May 28. The lowest recorded prices for petrol this year were on July 6 at 150.59 pence per litre, and for diesel on July 9 at 164.52 pence per litre.
These price fluctuations have had a substantial financial impact on drivers. The RAC Foundation calculated that UK drivers paid an additional £307 million between February 28 and March 24, coinciding with the start of the conflict. The RAC has indicated that a brief pause in hostilities is unlikely to stabilize oil prices, suggesting that elevated fuel costs may persist unless there is a sustained drop over several weeks.