UK Petrol Prices on Course for Record High Amid Ongoing Iran Tensions

Motorists in the UK are bracing for higher petrol prices as tensions between the US and Iran continue to escalate. The price of Brent Crude oil has surged from below $70 (£52) to briefly peak over $120 (£90), with most of the past five months seeing prices above $85 (£63). While prices dropped after an initial ceasefire, a resumption of missile attacks caused another spike in July. However, recent fluctuations have seen prices drop back down to around $86 (£64) per barrel on Friday.

The impact of these changes may take up to two weeks to be reflected at petrol pumps in the UK, where the average price was 131.71p before the US launched strikes on Iran on February 28th. Simon Williams, head of policy at the Royal Automobile Club (RAC), warned that 'the outlook for fuel prices is pretty grim' and predicted that a litre of petrol will likely surpass 160p on average tomorrow, setting a new record since the conflict began.

The price of diesel is expected to hit 180p 'very soon' and rise further towards 185p. Retailer profit margins are typically around 8p to 15p per litre, but are currently lower than usual as forecourts hold back on passing on the milestone price. James Hitchman, operations director at PetrolPrices, noted that many retailers appear reluctant to move above the psychologically important 160p-per-litre threshold.