The average price of a litre of petrol in the UK has soared to 158.5p, eclipsing the previous highest level recorded during the Iran oil crisis, according to the RAC.
Record High Prices
New figures from the RAC show that the cost of unleaded petrol at UK forecourts now stands at 158.5p per litre, the most expensive since December 2022. Since the onset of the Middle East conflict on February 28, the price peaked at 158.3p on April 15 before dipping slightly. However, from the start of May, prices began climbing again, culminating in this new record.
Warning for Drivers
RAC head of policy Simon Williams described the recent rise as “bad news for drivers ahead of the bank holiday” and cautioned that prices are likely to increase further. “RAC analysis of wholesale fuel data unfortunately indicates that unleaded is now likely to increase to at least 160p a litre in the coming weeks, unless there’s a dramatic and sustained drop in the price of oil which has been above 100 US dollars a barrel since late April,” he said.
Williams added that the outlook for diesel is more positive, as wholesale prices have fallen significantly since peaking in early April. “While the price of diesel at the pump has fallen nearly 6p to 185.92p – its lowest price since the start of last month – it should really be much lower than it is. We urge retailers to reflect the savings they’re benefitting from when buying new supply on the forecourt,” he stated.
Fuel Duty Developments
It has been widely reported that Chancellor Rachel Reeves will abandon her plan to increase fuel duty from September. In her November 2025 budget, she announced that the 5p per litre fuel duty reduction, introduced by the Conservative government in March 2022, would be extended until the end of August 2026, with rates gradually returning to previous levels over the next five years.
Financial Impact on Motorists
Motoring research charity the RAC Foundation estimates that the rise in pump prices since the conflict in the Middle East began has led to motorists paying an additional £2.9 billion. This figure is based on average daily pump price rises and last year’s fuel consumption rate.
