Petrol Prices Rise Above 150p per Litre
The price of a litre of petrol has surpassed 150p for the first time since May 2024, with diesel averaging over 177p per litre. This increase comes a month after the United States and Israel initiated attacks on Iran.
According to the latest data from the motoring organisation RAC, the ongoing conflict continues to exert upward pressure on fuel prices, although current levels remain below the peaks experienced following Russia's invasion of Ukraine.
On Friday, wholesale oil prices climbed back above $110 per barrel for Brent Crude. This occurred despite US President Donald Trump announcing a postponement of plans to commence the destruction of Iranian energy facilities by an additional 10 days.
Impact on Consumers and Market Response
The RAC described the recent price increase as an "unwelcome milestone."
"With the long-awaited four-day Easter weekend almost within touching distance, the cost of getting away by car is going to be noticeably higher this year," said RAC head of policy Simon Williams.
Unleaded petrol prices have risen by 17p per litre since the conflict began, while diesel prices have increased by 35p per litre.
The RAC advises drivers to "plan carefully" when refuelling, recommending the use of mobile applications that enable comparison of prices at local petrol stations.
Wholesale Oil Price Fluctuations
Over the past four weeks, wholesale oil prices for Brent Crude have fluctuated between $73 and $116 per barrel. These movements have been influenced by traders' assessments of whether oil supply from the Middle East will become easier or more constrained.
Late on Thursday, President Trump stated that negotiations with Iran were "going very well" and that he was delaying military strikes on Iran's energy infrastructure until at least 6 April.
Such statements have historically contributed to calming market tensions.
However, Russ Mould, investment director at AJ Bell, commented that communications from Washington and Tehran appeared to be operating in "parallel worlds."
Factors Influencing Fuel Prices
Increases in wholesale oil prices typically lead to higher pump prices, often with a slight delay. Nevertheless, a significant portion of the overall fuel price is comprised of costs related to transportation, processing, retail, and taxation.
