UK petrol prices have risen to their highest point since the start of the Iran conflict, though they remain below 2022 peaks.
Key facts
- •Current petrol prices are at 159.97p per litre, while diesel costs 178.97p per litre.
- •Diesel remains below its 15 April peak of 191.54p per litre.
- •Current prices are still lower than the summer 2022 highs of 191.5p for petrol and 199p for diesel following the invasion of Ukraine.
- •The official markets regulator found no evidence of price gouging by fuel retailers.
- •A planned 5p increase in fuel duty has been delayed until 31 December.
The average price of petrol in the UK has climbed to 159.97p per litre, marking its highest level since the beginning of the Iran conflict, according to the RAC. While diesel prices have also increased to 178.97p per litre, they remain below the record peak of 191.54p reached on 15 April.
By the numbers
Market Trends and Projections
Fuel prices experienced a low in early July, with petrol at 150.59p per litre and diesel at 164.52p per litre. RAC head of policy Simon Williams stated that diesel prices are expected to reach 185p per litre in the coming weeks, assuming no significant reduction in oil prices. Because oil transportation is a slow process, changes in wholesale markets typically take about two weeks to impact prices at the pump.
Retailer Conduct and Government Measures
Fuel retailers have denied allegations of price gouging during the current conflict. The official markets regulator reported that it has not found evidence of retailers adjusting pricing strategies to exploit the situation. Meanwhile, the government's Fuel Finder scheme allows drivers to compare fuel costs across the UK, a tool the AA credits with helping to lower prices. Additionally, Prime Minister Sir Keir Starmer announced on 20 May that a planned 5p fuel duty increase scheduled for September is postponed until 31 December.
Timeline
- 15 AprilDiesel reached a peak price of 191.54p per litre.
- 20 MayPrime Minister Sir Keir Starmer announced a delay to a planned 5p fuel duty increase.
- Early JulyAverage fuel prices hit a low of 150.59p for petrol and 164.52p for diesel.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
