UK petrol prices have climbed to their highest level this year after Donald Trump ordered renewed strikes on Iran, the AA and RAC report. Diesel is also rising and could reach 185p a litre within weeks, while Iran has closed the Strait of Hormuz, a key oil export route. Prices remain below the record set during Russia's invasion of Ukraine in 2022.
UK petrol prices have risen to their highest level this year after Donald Trump renewed bombing in Iran, adding to pressure on drivers already facing higher costs from the conflict. The RAC said average petrol prices hit 160p a litre. The AA put the figure at 159.5p a litre on Thursday, a rise of more than 3p in a week.
Diesel has climbed even further. The RAC said diesel rose 14.5p since 9 July to 179p a litre, though that stays 12.5p below its conflict high of 191.54p hit on 15 April. As a result, filling a family-size car with unleaded now costs £88, with a tank of diesel £10 more, the RAC said.
Wholesale costs point toward a higher diesel price
Wholesale petrol costs eased slightly this week, but not enough to change pump prices. Diesel could keep rising and is likely to reach 185p a litre in the next few weeks, barring a major oil price drop, the RAC said. Meanwhile, the AA reported diesel at 178.2p a litre, still well short of this year's high of 192.4p set in mid-April.
Iran closes the Strait of Hormuz
Prices had eased after the US reached a memorandum of understanding with Iran in mid-June, a move that appeared to be a precursor to peace talks. However, Trump has since struck Iran several times in recent days, prompting retaliation against America's allies in the Middle East. Iran then closed the Strait of Hormuz in response, a key export route for oil from the Gulf.
Fuel Finder ties pumps closer to wholesale swings
AA spokesperson Luke Bosdet said pump prices appear to have tracked wholesale costs more closely since May, when the government's new "Fuel Finder" service began forcing stations to report prices publicly. According to AA spokesperson Luke Bosdet: "Oil and wholesale costs will fall again at some stage", though he added it is unclear whether stations will pass on any drop quickly or revert to slower pricing.
Even so, current prices sit well below the all-time high of 191.53p reached on 3 July 2022, when Russia's invasion of Ukraine drove the previous record, the AA said.
Source: The Guardian
Trading involves risk.
Risk Disclaimer
