Petrol prices in the UK have surged to their highest level since November 2022, coinciding with an anticipated record-breaking August bank holiday travel period. The average price for unleaded petrol reached 161.6 pence per litre on Thursday, matching the summer's peak.
The surge in fuel costs is attributed to ongoing conflict in the Middle East and general volatility in global oil markets. Diesel prices have also climbed, returning to an average of 183.4 pence per litre, a level not seen since early June.
This situation arises as an estimated 20 million motorists are expected to embark on journeys between Friday and Monday, marking what is predicted to be the busiest August bank holiday weekend since record-keeping began in 2015. Major road routes are likely to experience significant traffic congestion.
Filling a typical 55-litre car tank will cost approximately £89 this weekend, a notable increase from the £74 cost during last year's August bank holiday. The RAC anticipates 4.1 million journeys on Friday, followed by 3.8 million on Saturday, 3.1 million on Sunday, and 3.4 million on Monday, with an additional 5.5 million journeys spread across the four-day period.
Transport analytics firm Inrix has identified several potential congestion hotspots, including sections of the M25, M1, and M5 motorways, with predicted delays ranging from 45 minutes to over an hour on various routes throughout the weekend.
The increase in prices has drawn criticism from the AA, following a report from the Competition and Markets Authority (CMA) which accused the road fuel sector of lacking effective competition. The CMA cited the "continued use of passive pricing strategies by the majority of retailers" as a contributing factor to sustained high profit margins, which is reflected in current forecourt prices.
While the wholesale price of petrol has risen to 68.5 pence per litre due to increased oil prices since early August, it remains below the late April and early May peak. However, average pump prices this week are nearly 2 pence per litre higher than at the end of May. Despite a brief fall in wholesale prices in late July and early August, renewed tensions involving the US and Iran caused costs to rise sharply again. The AA noted that a significant drop in wholesale prices previously resulted in only a minimal reduction at the pump.
Price disparities exist across different regions, with some areas offering petrol around 10 pence per litre cheaper than the national average, while nearby forecourts charge more. Examples include Greater Manchester, Bradford, and Haslingden in Lancashire. The AA suggests that drivers can utilize fuel finder tools to locate more competitively priced stations and combat higher local prices.