Petrol prices at UK forecourts have climbed to 160p per litre, marking the highest level since November 2022 and representing a significant reversal from earlier in the month. The motoring organization RAC characterized the development as unwelcome news for drivers, noting that the cost of filling a typical family car with unleaded fuel has now reached £88.
The price increase follows a brief period of relief in early July when prices had fallen to 151p per litre following announcements of a ceasefire agreement in the Middle East. The US and Iran had reached an understanding in mid-June that extended a ceasefire by 60 days and was meant to facilitate the restoration of trade through the strait of Hormuz. However, recent developments have disrupted these efforts, with the US conducting strikes against Iran in recent days, prompting Iranian retaliation against American allies in the region.
Diesel prices have also risen, climbing 14.5p to 179p per litre, though this remains below the April high of 192p. Analysts project further increases ahead, with forecasts suggesting diesel could reach 185p in coming weeks unless oil prices decline significantly. The uptick in fuel costs comes at a particularly challenging time, as UK travel patterns show millions of drivers are planning road trips during the peak holiday season.
The price movements have been tracked against international oil benchmarks, with Brent crude rising above $90 per barrel on Friday amid regional tensions. Recent incidents involving tankers in the strait of Hormuz and Iranian military actions have contributed to market volatility. An AA spokesperson noted that approximately 20.5 million UK drivers are expected to travel during the peak holiday week, with millions undertaking journeys of 100 miles or more.
A government fuel pricing transparency scheme introduced in May appears to be affecting market behavior. The requirement for petrol stations to publicly report prices has coincided with pump prices following wholesale costs more closely, reversing historical patterns where rapid increases were followed by slower decreases.
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