UK Petrol Prices Hit Highest Level Since Iran Conflict Began

UK petrol prices have hit their highest level since the Iran conflict began in February. The average cost of petrol has reached over 163p per litre, according to the motoring group RAC.

The price surge is due to the disruption caused by the war in oil supplies across the Middle East. When the fighting started on 28 February, wholesale oil prices rose sharply. Analysts say that every $10 increase in the oil price pushes up pump prices by around 7p a litre.

Before the conflict, Brent crude was trading at about $70 per barrel. However, it peaked at over $120 during the fighting. After the framework deal to end the war was signed in June, prices fell back to near $70. But with the collapse of peace talks, the price climbed back up again.

Despite the conflict, petrol and diesel prices remain below the levels reached in the summer of 2022 following Russia's invasion of Ukraine. Fuel retailers have denied accusations of price gouging during the conflict, with the official markets regulator saying it had not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis.