Key facts
- Average petrol price in the UK has reached 160p per litre.
- This is the highest level since November 2022.
- Diesel prices have increased to 179p per litre.
- The cost to fill a family car with petrol is now £88.
- Brent crude oil surpassed $90 a barrel amid tensions in the Strait of Hormuz.
- A new fuel finder scheme may be influencing more accurate price reporting by retailers.
The price of petrol at UK forecourts has reached a new high, mirroring levels seen during the Iran War and exacerbating financial pressures on households. The RAC reported that the average pump price has climbed to 160p per litre, a significant increase from the 151p seen in early July. This marks the highest price since November 2022, when global energy markets were reacting to Russia's invasion of Ukraine.
Diesel prices have also seen an increase, rising by 14.5p to 179p per litre, though this remains below the April peak of 192p. The RAC estimates that filling a family-sized car with unleaded petrol now costs £88, with a tank of diesel costing £10 more. While wholesale petrol prices saw a slight decrease this week, it was insufficient to impact retail prices. The RAC anticipates diesel prices will continue to climb in the coming weeks, potentially reaching 185p per litre unless oil prices significantly decline.
These price hikes come at a critical time for many families preparing for their annual holidays. AA polling suggests that 20.5 million UK drivers will be on the road during the peak holiday season. Fuel prices had previously declined following a US memorandum of understanding with Iran in mid-June, which was seen as a precursor to peace talks. However, recent actions by Donald Trump and subsequent strikes against Iran and its allies in the Middle East have reversed this trend. On Friday, Brent crude oil futures rose by over 1% to exceed $90 a barrel after Iran's Revolutionary Guards claimed to have struck two tankers in the Strait of Hormuz.
Despite the recent surge, fuel prices have reportedly been tracking wholesale costs more closely since May, following the implementation of a new government fuel finder scheme that mandates public reporting of prices by all petrol stations. This contrasts with previous years, where retailers were accused of 'rocket and feather' pricing, rapidly increasing prices but slowly reducing them. The AA noted that in early May, when wholesale costs rose significantly, average petrol prices increased by less than 2p, suggesting greater compliance with wholesale price movements since the enforcement of the fuel finder scheme.