Petrol prices surge to highest level since Iran oil crisis began

New figures from RAC show the average price of petrol has risen to 158.5p per litre - overtaking the previous peak reached during the height of Middle East tensions in April. And drivers are now being warned prices could climb even higher within weeks.

Why petrol prices are rising again

Fuel prices initially surged after conflict erupted in the Middle East on February 28, sending global oil prices sharply higher. Petrol briefly peaked at 158.3p per litre in mid-April before easing slightly -- but prices have now started climbing again after oil remained above 100 US dollars a barrel for weeks.

According to the RAC, wholesale fuel data suggests unleaded petrol could soon hit at least 160p per litre unless oil prices fall significantly. That would push pump prices close to levels last seen during the cost of living crisis.

Bank Holiday blow for drivers

The latest increase comes just as millions of motorists prepare for bank holiday travel and summer journeys. Simon Williams described the rise as "bad news for drivers" and warned there may be more pain ahead.

While petrol prices continue rising, diesel drivers have seen some relief. The average diesel price has fallen to 185.92p per litre - nearly 6p lower than earlier this spring - although the RAC says prices should still be dropping faster. Riz Malik, Independent Financial Adviser at Southend-on-Sea-based R3 Wealth [1], said it could get even worse in the coming weeks and months.

He added: "The 'Trump tax' you now pay on fuel could go even higher in weeks to come, especially as we are now playing real-life Battleships in the Gulf. Drivers should brace for things potentially getting a lot worse." Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial [2], said drivers are already seeing GBP2 a litre at some stations.

He added: "Three months ago we were gazing into the future thinking prices would never reach GBP2 per litre, now we are seeing it regularly on motorway service stations. It's now a question of when average prices will reach this level as Donald Trump's war in the Middle East rages on with no end in sight and no plan coming from the White House. "The level of lunacy from the States, filtering its way into higher inflation in the UK and Europe, will leave a bad taste in the mouth of US's allies that will need much repair by the next administration.

"More immediately, Trump will want to consider inviting some adults into the room, or at least allowing his European partners to take over negotiations to conclude this bloody conflict that is inflicting not just human pain on the people of the Middle East but economic pain on the West too."

Motorists have already paid billions more

According to estimates from the RAC Foundation, rising fuel costs linked to the Middle East crisis have already added around GBP2.9 billion to motorists' fuel bills. The calculation is based on average fuel price rises combined with UK fuel consumption levels over the past year. For households already struggling with higher food, mortgage [3] and energy costs, the latest petrol increase risks putting even more pressure on budgets ahead of summer.

Could fuel duty changes be scrapped?

There are also growing reports that Rachel Reeves could abandon planned fuel duty increases later this year.

The Chancellor had previously confirmed that the temporary 5p fuel duty cut - first introduced in 2022 - would remain in place until August 2026 before gradually being reversed. But with fuel prices climbing sharply again, ministers are reportedly under pressure to avoid adding further costs for drivers. Recommended reading:

What drivers can do to save money

With pump prices expected to rise further, experts are urging drivers to shop around for cheaper forecourts where possible.

Simple ways to reduce fuel spending include:

Using supermarket loyalty schemes
Avoiding motorway service stations
Driving smoothly to improve fuel efficiency
Checking tyre pressure regularly
Comparing local fuel prices online

However, with global oil prices still volatile, many analysts believe fuel costs could remain high well into the summer.

References

^ Southend-on-Sea-based R3 Wealth (www.r3wealth.com)
^ Swindon-based Mather and Murray Financial (www.matherandmurray.co.uk)
^ mortgage (www.thisismoneyback.co.uk)