Petrol prices in the UK have surged to their highest level since November 2022, with the average price of unleaded reaching 161.6 pence per litre as of Thursday. This increase coincides with an anticipated record-breaking August bank holiday weekend, as an estimated 20 million drivers prepare to travel.
The current price matches the highest seen throughout the summer. Factors contributing to the surge include ongoing conflict in the Middle East and continued volatility in global oil markets, which are increasing operating costs for motorists. Diesel prices have also climbed, averaging 183.4 pence per litre, a level not observed since early June.
This spike in fuel costs comes at a time when an estimated 20 million car journeys are expected between Friday and Monday. The RAC anticipates this will be the busiest August bank holiday for travel since it began tracking such data in 2015, warning of significant traffic congestion on major routes. For drivers, filling a typical 55-litre fuel tank will cost approximately £89 this weekend, a notable increase from the £74 cost during the previous year's August bank holiday.
The AA has highlighted that these high forecourt prices follow recent criticism from the Competition and Markets Authority (CMA). The CMA accused the road fuel sector of lacking effective competition and suggested that the sustained use of passive pricing strategies by retailers contributes to high profit margins. The AA stated that this criticism is evident in current pump prices.
While the wholesale price of petrol has risen to 68.5 pence per litre, driven by an increase in oil prices since early August, it remains below the peak seen in late April and early May, when wholesale prices exceeded 72 pence per litre. Despite this, average pump prices this week are nearly 2 pence per litre higher than those recorded at the end of May following the earlier wholesale cost increase. Renewed tensions involving the US and Iran have contributed to a sharp rise in costs since wholesale petrol prices briefly fell by over 10 pence per litre in late July and early August. The AA noted that this significant wholesale drop had a minimal impact on UK pump prices.
Price discrepancies exist across different regions. While some areas with aggressive retail competition offer petrol at prices around 10 pence per litre below the national average, other forecourts charge significantly more. Examples of such variations have been noted in parts of Greater Manchester, Bradford, and Haslingden in Lancashire.
The RAC predicts that approximately 4.1 million motorists will travel on Friday, followed by 3.8 million on Saturday, 3.1 million on Sunday, and 3.4 million on bank holiday Monday. An additional 5.5 million journeys are expected to be spread across the four-day period, with some travelers making decisions on travel days closer to the time.
Transport analytics firm Inrix has identified several potential congestion hotspots: the M25 anticlockwise from Junction 17 to Junction 12, with potential delays of up to 50 minutes around midday on Saturday; the M25 clockwise from Junction 15 to Junction 19, expecting delays of nearly an hour on Saturday night; the M1 south from Junction 16 to Junction 6, with delays potentially reaching 70 minutes around 3 p.m. on Sunday; the M5 south from Junction 15 to Junction 23, predicting delays of up to 75 minutes around noon on Saturday; and the M5 north from Junction 11 to Junction 1, facing 45-minute delays around 7 p.m. on Monday.