Petrol prices at UK forecourts have climbed to 160p per litre, marking their highest point since November 2022, according to the RAC. The increase comes as tensions in the Middle East intensify following recent military strikes by the United States against Iran, reversing earlier gains from a ceasefire agreement. Diesel prices have also risen to 179p per litre, up 14.5p, though still below April levels. The cost of filling a family-sized car with unleaded petrol has increased to £88, while diesel now costs £10 more per tank.
The price surge follows a brief respite in early July when petrol fell to 151p per litre after the US and Iran agreed to a ceasefire memorandum in mid-June. That agreement had extended a 60-day truce and opened pathways for trade restoration through the Strait of Hormuz. However, recent US military action against Iran has prompted retaliation from Tehran against Washington’s regional allies. On Friday, the Islamic Revolutionary Guard Corps claimed responsibility for striking two tankers in the strait and redirecting four additional vessels. Brent crude, the international oil benchmark, rose above $90 per barrel in response, increasing more than 1% during trading.
Motoring organizations have flagged the financial impact on households preparing for holiday travel. The AA estimates that 20.5 million UK drivers will travel during the third week of the holiday season, with millions covering distances exceeding 100 miles. RAC policy head Simon Williams warned that diesel prices appear positioned to reach 185p per litre within weeks absent a significant decline in crude oil costs. The AA spokesperson noted the timing as particularly difficult for household budgets already under pressure.
The price movements may reflect improved market transparency. A government fuel finder scheme introduced in May requires all petrol stations to publicly report prices. Since the scheme’s enforcement began, fuel retailers have appeared to adjust pump prices more closely in line with wholesale cost movements, contrasting with historical patterns of slower price reductions following rapid increases.
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