Petrol prices are likely to rise further after hitting their highest level since the Iran conflict started, the RAC is warning.
The motoring organisation says the average price of a litre of petrol is now £158.52p, eclipsing its previous war high of 158.31p, on April 15. Although the price fell by more than a penny, it started rising again at the start of May, says the RAC.
It says its analysis of wholesale fuel data suggests the forecourt price could reach 160p in the coming weeks “unless there is a dramatic and sustained drop in the price of oil, which has been above $100 a barrel since late April”.
RAC head of policy Simon Williams describes the latest increase as “bad news for drivers ahead of the bank holiday”.
The organisation says there is “a more positive outlook” for diesel, with the wholesale price reducing “significantly” since its early April peak, falling nearly 6p to 185.92p, its lowest price for about seven weeks.
However, the RAC says diesel “ought to be much lower than it is” and urges retailers “to reflect the savings they’re benefitting from when buying new supply”.
The RAC adds that “it will be a relief for drivers who have been struggling with the higher cost of filling up” if Chancellor Rachel Reeves scraps plans to end the 5p per litre cut in fuel duty – as she is thought likely to do.
Despite an uneasy ceasefire, the Iran war shows little sign of coming to a permanent end, with US President Donald Trump this week claiming he had been persuaded to call off taking military action after an appeal by Gulf allies.
A blockade of the Strait of Hormuz by both Iran and the US means tankers have been unable to transport oil from the Persian Gulf, leading to shortages on the global market and a spike in the price of Brent Crude.
