Petrol Prices Reach Wartime High
The average price of unleaded petrol has increased to 158.52p per litre, marking its highest level since the onset of the Iran war, according to the RAC.
Petrol and diesel prices surged following the outbreak of the conflict on 28 February, as production and transportation of energy across the Middle East slowed or halted due to missile strikes and drone attacks.
The price of petrol last peaked at 158.31p on 15 April before falling by over a penny until early May, when it began to rise again, the RAC reported.
The motoring organisation also indicated that unleaded petrol prices are likely to rise to at least 160p per litre in the coming weeks unless there is a "dramatic and sustained drop" in oil prices.
Impact of Brent Crude Prices
Brent crude, the global benchmark for wholesale oil prices, is currently trading at approximately $111 per barrel. Prior to the conflict, Brent was trading near $73 per barrel.
This increase has directly influenced pump prices. At the start of the conflict, the average price of unleaded petrol was 132.83p per litre.
Diesel prices have also risen significantly, from an average of 142.38p per litre at the start of the conflict to 185.92p per litre currently.
Fuel Duty and Government Response
"The news that petrol has climbed to a new wartime high comes in a week when the chancellor is thought to be on the point of scrapping plans to increase fuel duty by a penny in September,"said Simon Williams, RAC head of policy.
"This would have been the first step in reversing the 5p fuel duty cut that's been in place since the Ukraine war. If she decides to keep fuel duty at the current rate of 52.95p per litre, it will be a relief for drivers as our research shows they have been struggling with the higher cost of filling up."
The Treasury has declined to comment on tax speculation.
Diesel Price Outlook
Williams described the outlook for diesel as "more positive," noting that wholesale prices have decreased significantly since peaking in early April.
Despite diesel prices at the pump falling to their lowest level since the start of last month, Williams added:
"It should really be much lower than it is."
"We urge retailers to reflect the savings they're benefiting from when buying new supply on the forecourt,"he said.
