UK motorists are facing a challenging situation at the pumps this week, with petrol prices expected to surpass £1.50 per litre for the first time in nearly two years.
The RAC has reported that average petrol prices have reached 149.82p per litre nationally, making it almost certain that the 150p threshold will be crossed soon.
Diesel users are experiencing even greater increases, with prices rising more than 34p per litre since the onset of military actions by the US and Israel against Iran.
Diesel prices have now reached an average of 176.66p — levels not seen since Christmas 2022.
The RAC’s Simon Williams said: “Our analysis of wholesale fuel data points towards petrol continuing to rise to 152p a litre and diesel to 185p, possibly higher.”
This surge in fuel prices is largely driven by global instability, with Brent crude oil trading around $107 per barrel. Earlier this month, prices spiked briefly to $120, up from $70 just four weeks ago. Analysts warn that rural and motorway petrol stations are facing the highest prices, with some garages already charging over £2 per litre for diesel, while others remain below 160p.
While soaring costs at the pumps are putting a strain on drivers, as long as the cost of oil remains around $100 [then] prices should begin to stabilise,” Williams said.
Government ministers have accused retailers of profiteering, although forecourt operators deny these allegations. Meanwhile, the Treasury stands to gain from the price increase, with VAT receipts on fuel potentially rising from £13 billion to £15.5 billion, which critics describe as a “tax on a tax.
The RAC noted that UK motorists consumed 18.6 billion litres of petrol and 28.3 billion litres of diesel last year. This ongoing price surge is likely to directly impact household budgets, especially as inflationary pressures continue to grow.
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