UK petrol prices have climbed above 150 pence per litre, marking the highest average retail cost since mid‑2024 as the ongoing Iran war continues to influence global oil and fuel markets.
The rise reflects broader energy price pressures caused by geopolitical tensions that have disrupted supply routes and lifted crude oil costs, according to official RAC data cited by BBC News and other outlets.
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Petrol and diesel prices hit new highs
Average UK petrol has now surpassed 150 p per litre, with diesel trading even higher on many forecourts.
Diesel rates have approached nearly 178 p per litre in current market conditions, while petrol’s rise has occurred over a period of weeks as conflict‑linked volatility has driven up the cost of crude oil globally.
Fuel price tracking shows petrol prices have increased by more than 17 p and diesel by over 35 p since the end of February, the period shortly after fighting escalated.
These price changes reflect wholesale market conditions where Brent crude has stayed above $110 per barrel amid disruption of key shipping routes such as the Strait of Hormuz.
Such routes carry a substantial share of global oil exports, and interruptions to tanker traffic can push up international energy costs that ultimately filter through to UK forecourt prices.
Supply tightness and retail response
Fuel retailers, including major forecourt operators, have reported temporary shortages at a small number of petrol pumps, attributed to elevated demand rather than a systemic supply collapse.
Retail executives have noted that increased sales combined with fixed supply allocations can lead to short‑term gaps at individual stations while awaiting deliveries.
Industry groups representing fuel retailers have stated that national supply remains stable and advised motorists to continue normal purchasing patterns.
Retailers have also rejected claims of profiteering, highlighting that their profit margins are under pressure and that higher prices have increased government tax receipts rather than only benefiting sellers.
Broader economic and retail impacts
The surge in UK fuel prices comes as wider economic indicators show inflationary pressures spreading across sectors. Rising energy costs have fed into general input prices for goods and transport, with analysts warning of ongoing inflation risks linked to elevated crude and fuel prices.
Some economists project that this could keep UK inflation above its target for the remainder of 2026.
Higher petrol and diesel prices have immediate cost implications for businesses that rely on road transport, logistics, and distribution. Increased fuel costs can add to operating expenses for firms and may translate into higher prices for consumers in other retail categories.
In addition, elevated fuel costs have contributed to a rise in interest in low‑emission vehicles, with consumers and businesses exploring alternatives to reduce exposure to volatile fossil fuel markets.
As the Iran conflict continues to influence international energy markets, UK retailers, transport operators and policymakers are monitoring fuel price trends for both short‑term volatility and longer‑term implications for inflation and supply chain costs.
