The RAC issued a fresh alert on Friday, advising motorists to take two key actions before refuelling with petrol or diesel. The motoring organisation provided its latest update on fuel prices at the end of the working week, highlighting that petrol had increased by an average of 0.6 pence per litre over the past seven days, reaching an average of 157.6p. This marks its highest level since 20 April and sits just 1p below the peak recorded since the Iran war caused oil prices to surge.
Diesel Prices Continue to Decline
Diesel, in contrast, is still experiencing a downward trend. The average price on Friday stood at 188p per litre, approximately 3.5p lower than its post-war peak. The geopolitical situation involving the US, Israel, and Iran remains fragile and unpredictable. A shaky ceasefire is reportedly still in place, despite exchanges of fire over the past 24 hours.
Impact of Strait of Hormuz Tensions
Hostilities have been concentrated in the Strait of Hormuz, a critical chokepoint for global oil supplies. Since the conflict escalated at the end of February, UK drivers have faced substantial cost increases at the pump, with petrol rising by more than 20p per litre and diesel by around 50p. Approximately 20% of the world's oil passes through the Iran-controlled strait, and little has transited the waterway over the past two months, sending shockwaves through the global economy.
Rod Dennis, senior policy officer at the RAC, commented: “Petrol prices have risen by 0.6p in the last week to an average of 157.6p, their highest level since 20 April and less than 1p off the peak since the war in Iran began. The situation for drivers of diesel vehicles is a little better, with prices still falling - albeit very slowly - to 188p, around 3.5p off the highest price last month of 191.5p.
“The oil price has remained very volatile this week, but what we can be sure of is that only a sustained lower oil price, over a matter of weeks and not just days, will be enough to guarantee drivers pay less when they fill up. We strongly recommend drivers shop around for fuel and make use of free tools such as the myRAC app to never pay a penny more for fuel than they need to.”
US-Iran Conflict Continues
US President Donald Trump downplayed the recent exchange of fire on Thursday, referring to the US strikes as a “love tap” in a phone call with ABC. However, he reiterated threats to resume full-scale bombing if Iran does not agree to reopen the strait and roll back its nuclear programme. Iran’s Foreign Ministry condemned the US strikes as a “clear violation” of the ceasefire. Tehran had previously stated it was reviewing the latest US proposals for ending the war, delivered via Pakistan, which is mediating.
The US military reported that it intercepted Iranian attacks on three navy ships in the Strait of Hormuz late on Thursday and “targeted Iranian military facilities responsible for attacking US forces”. No US ships were hit. Iranian state media claimed that the country’s forces exchanged fire with “the enemy” on Qeshm Island in the strait and reported loud noises and continuous defensive fire in western Tehran late on Thursday. Iran’s Foreign Ministry issued a statement condemning what it called “hostile” US military action against two Iranian oil tankers near the port of Jask and the strait, as well as strikes on nearby coastal areas.
