Petrol prices at UK forecourts hit 160p per litre, marking the highest level since November 2022 and reversing earlier gains from a Middle East ceasefire announcement. The RAC reported this represents a new benchmark during the Iran conflict, with filling a family-sized car now costing £88. Diesel prices also climbed to 179p per litre, up 14.5p, though still below April’s peak of 192p.
The price increase comes as tensions in the Middle East have intensified following initial progress on a ceasefire. In mid-June, the US and Iran reached an understanding that extended a regional ceasefire by 60 days and aimed to restore shipping through the strait of Hormuz. However, recent developments have reversed this trajectory, with the US conducting fresh strikes against Iran, prompting retaliatory actions from Tehran against American allies in the region. On Friday, Brent crude rose above $90 a barrel following reports that Iran’s Islamic Revolutionary Guard Corps struck tankers in the strait of Hormuz and redirected other vessels.
The timing presents particular challenges for UK motorists, with the AA noting that approximately 20.5 million drivers plan road trips during the peak holiday week, including millions traveling distances of 100 miles or more. According to the RAC, wholesale petrol prices eased slightly but not enough to affect pump pricing, with diesel expected to continue rising toward 185p per litre in coming weeks absent a significant oil price decline.
Analysts noted a shift in pricing dynamics following the government’s May introduction of a fuel finder scheme requiring public price reporting at all stations. The AA observed that retail prices now track wholesale costs more closely than in previous years, potentially reducing the lag between wholesale decreases and pump price cuts that characterized earlier “rocket and feather” pricing practices.
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