Petrol prices at UK forecourts have climbed to 160p a litre, marking the highest level since November 2022, according to the RAC motoring organization. The increase reverses a temporary decline to 151p that had followed announcement of a Middle East ceasefire in mid-June. Diesel prices have risen 14.5p to 179p per litre, though remaining below April’s peak of 192p.
The cost escalation places financial strain on British households during peak holiday travel season. Filling a typical family vehicle with unleaded petrol now costs approximately £88, with diesel tanks running £10 higher. The RAC projects diesel prices may continue rising toward 185p per litre in coming weeks absent significant oil price declines.
Geopolitical tensions are driving the price movement. Following a US-Iran ceasefire agreement in mid-June that temporarily eased concerns, recent military escalations have reignited volatility. The US has resumed strikes against Iran in recent days, prompting Iranian retaliation against American allies in the region. Iran’s Islamic Revolutionary Guard Corps reported striking two tankers in the Strait of Hormuz and redirecting four additional vessels, contributing to Friday’s rise in Brent crude above $90 per barrel.
AA polling indicates 20.5 million UK drivers plan road travel during peak holiday periods, with millions covering distances exceeding 100 miles. An AA spokesperson characterized the timing as “very bad,” coinciding with elevated fuel costs during heavy vacation travel. However, the organization noted that fuel pricing appears more responsive to wholesale fluctuations since May, when the government implemented a mandatory fuel price reporting scheme. This transparency measure has reduced historical “rocket and feather” pricing patterns where retailers raised prices quickly but cut them gradually, the AA indicated.
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