Petrol prices across the UK have now surpassed levels seen during the Iran oil crisis, reaching their highest point since December 2022, new figures show. The average cost of a litre of petrol at British forecourts currently stands at 158.5p, according to the RAC.
This latest surge follows a period of volatility, with prices peaking at 158.3p on 15 April, shortly after the conflict in the Middle East began on 28 February. While the average price saw a slight dip of more than a penny per litre until early May, it has since resumed an upward trajectory.
Simon Williams, head of policy at the RAC, described the recent increase as “bad news for drivers ahead of the bank holiday” and cautioned that further rises are anticipated. He stated: “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.”
In contrast, the outlook for diesel appears more positive, with wholesale prices having significantly reduced since their peak in early April. Despite this, Mr Williams noted: “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 motoring research charity, the RAC Foundation, estimates that the rise in pump prices since the Middle East conflict commenced has cost motorists an additional £2.9 billion. These figures are based on average daily pump price increases and last year’s fuel consumption rates.
Amidst these rising costs, reports suggest that Chancellor Rachel Reeves is expected to abandon plans to increase fuel duty from September. She had previously announced in her November 2025 budget that the 5p per litre fuel duty reduction, introduced by the Conservative government in March 2022, would be extended until the end of August 2026, with rates gradually returning to previous levels over the subsequent five years.
