Petrol prices hit highest level since start of Iran war

The average cost of a litre of petrol has surged once again amid the crisis in the Middle East. Prices previously peaked at 158.3p per litre on 15 April, and while they had dipped more than a penny per litre until early May, they have now increased again.

Simon Williams, head of policy at the Royal Automobile Club (RAC), described the surge as "bad news for drivers ahead of the bank holiday" and warned that further rises are to be expected.

He said in a statement: "RAC analysis of wholesale fuel data unfortunately indicates that unleaded is now likely to increase to at least 160p a litre in the coming weeks, unless there’s a dramatic and sustained drop in the price of oil which has been above 100 US dollars a barrel since late April."

Read more: Oil giant BP's profits soar by 130 per cent during Iran war

Mr Williams added: “It’s a more positive outlook for diesel as the wholesale price has reduced significantly since it peaked in early April. While the price of diesel at the pump has fallen nearly 6p to 185.92p – its lowest price since the start of last month – it should really be much lower than it is.

“We urge retailers to reflect the savings they’re benefitting from when buying new supply on the forecourt.”

The RAC Foundation estimates that the rise in petrol prices since the Middle East conflict kicked off in February has cost motorists an additional £2.9 billion. The motoring research charity's figures are based on average daily pump price increases and last year’s fuel consumption rates.

Meanwhile, reports suggest that on Thursday, Chancellor Rachel Reeves will abandon her plan to increase fuel duty from September.

She previously announced in her November 2025 budget that the 5p per litre fuel duty reduction, which was introduced by the Conservative government in March 2022, would be extended until the end of August 2026, with rates then gradually returning to previous levels over the next five years.