Drivers are facing a warning that diesel could reach 180p per litre this week, as petrol prices continue to climb under new Prime Minister Andy Burnham. The RAC has cautioned that pump prices are rising due to renewed conflict in the Middle East.
Unleaded petrol rose by 0.6p over the weekend to an average of 157.81p per litre, while diesel increased by 1p to 175.71p. According to figures from the RAC, these prices represent a jump of 6.5p for petrol and 9p for diesel since the start of June, adding £3.50 to the cost of filling a petrol car and £5 for a typical diesel tank.
Middle East conflict drives up oil costs
The rise follows the end of the ceasefire in Iran and renewed US bombing, with fighting over the Strait of Hormuz pushing up oil prices. RAC head of policy Simon Williams said: “Pump prices continued their inevitable rise over the weekend, with unleaded up another 0.6p to an average of 157.81p and diesel a penny to 175.71p. It looks highly likely now that petrol will hit 160p a litre – its highest level since the United States/Iran conflict began – and diesel 180p by the end of this week, off the back of an elevated oil price.”
Burnham's cost of living measures
New Prime Minister Andy Burnham has made tackling the cost of living his main priority. He has announced a cut to VAT on electricity, saving households an average of £45, with EV drivers benefiting from home charging, as well as a VAT cut for pubs and clubs. He has also committed to keeping the state pension triple lock and confirmed a tax exemption for pensioners on Income Tax, as promised by his predecessor Rachel Reeves.
However, Burnham has not indicated whether he will extend the fuel duty freeze, currently due to end on December 31. When it ends, another 5p will be added to petrol and diesel in VAT, as the temporary fuel duty cut initially announced by Rishi Sunak and extended by successive governments finally expires.
