Petrol prices across the United Kingdom have climbed to their highest point since the beginning of the Iran conflict, with the average cost reaching 160p per litre according to figures from the RAC motoring organization. The price surge is directly linked to disruptions in global oil supplies caused by the ongoing fighting in the Middle East, which has severely impacted access to crude oil markets.
Wholesale oil prices have experienced significant volatility since the conflict began. Brent crude, the global benchmark for oil pricing, initially spiked to above $120 per barrel from a pre-war level of approximately $70 per barrel. A framework agreement between the US and Iran in June brought prices down temporarily to near the $70 mark, but the subsequent collapse of peace negotiations pushed prices back above $100 per barrel, where they currently hover around $90.
Analysts note that pump prices typically respond to wholesale cost changes with a lag of roughly two weeks. For every $10 increase per barrel, petrol prices at the pump generally rise by approximately 7p per litre. While petrol has reached its war-time high, diesel prices remain slightly below their peak of 191.54p per litre recorded earlier. RAC policy leadership indicated diesel prices could reach 185p per litre within weeks absent significant oil price reductions.
The conflict has effectively disrupted the Strait of Hormuz, a critical global shipping route through which approximately 20% of the world’s oil and liquefied natural gas typically passes. The UK, which relies heavily on oil and gas imports primarily from the US and Norway, remains significantly exposed to global market price fluctuations. However, current prices remain below levels reached in summer 2022 following Russia’s invasion of Ukraine.
Retailers have denied accusations of price manipulation, and the government’s Fuel Finder scheme allows drivers to compare fuel prices across petrol stations. A planned fuel duty increase has been postponed until late December due to the conflict’s economic impact.
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