The average price of petrol at UK forecourts has reached 160p a litre, marking a new high since the Iran War began. This increase reverses a drop to 151p in early July, which followed the announcement of a fragile Middle East ceasefire.
According to the RAC, this is the highest petrol price since November 2022. Diesel prices have also risen by 14.5p to 179p, though this remains below the April high of 192p. Simon Williams, the RAC's head of policy, stated that filling a family-size car with unleaded now costs £88, while a tank of diesel is £10 more. He added that diesel prices are expected to continue rising, potentially reaching 185p a litre in the coming weeks.
The increase in fuel prices follows recent developments in the Middle East. Fuel prices had initially declined after the US reached a memorandum of understanding with Iran in mid-June. However, Donald Trump has reportedly grown weary of peace efforts, leading to recent US strikes on Iran and subsequent retaliation against US allies. On Friday, Brent crude rose above $90 a barrel after Iran's Revolutionary Guards reported striking two tankers in the Strait of Hormuz.
The AA spokesperson on pump prices, Luke Bosdet, noted that the reversal in forecourt prices comes at a challenging time, with 20.5 million UK drivers expected to travel during the third week of the holiday season. However, Bosdet also suggested that fuel prices appear to be tracking wholesale prices more closely since May, when a new government fuel finder scheme was introduced, requiring petrol stations to publicly report prices.