British motorists are facing the prospect of further increases in petrol and diesel prices, with analysts warning that fuel costs could soon return to peaks seen during the recent Iran crisis despite signs of easing tensions in the Middle East.
According to the latest RAC Fuel Watch data, the average price of petrol has climbed to 157.81p a litre, just under the 159.93p high reached during the conflict in late May.
Prices have risen sharply from 150.59p at the start of July, adding around 7p per litre in only a few weeks.
Diesel has increased even more rapidly, reaching 175.71p a litre, with average daily price rises outpacing those for petrol. Since the death of Iran’s Supreme Leader Ali Khamenei in February, diesel prices have climbed by more than 33p per litre, reflecting Britain’s dependence on imported diesel and stronger international demand.
Simon Williams, the RAC’s head of policy, said the outlook for motorists remained “pretty grim”, warning that petrol could soon reach 160p a litre, while diesel may approach 180p, if wholesale costs remain elevated.
Although crude oil prices have eased from recent highs above $100 a barrel to around $91, they remain significantly above pre-crisis levels. Analysts say only a sustained period of lower geopolitical tensions would allow wholesale fuel costs—and ultimately pump prices—to retreat meaningfully.
For households and businesses already grappling with higher transport costs, the renewed rise in fuel prices threatens to add further pressure to consumer spending and inflation in the months ahead.
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