Petrol prices in the United Kingdom have surpassed the previous peak recorded during the Iran oil crisis, according to the latest data from the RAC. The average cost of a litre of petrol now stands at 158.5p, marking the highest level since December 2022.
Price Trends Since Conflict Began
Following the onset of the Middle East conflict on February 28, petrol prices surged, reaching a peak of 158.3p on April 15. After a brief decline of over a penny per litre through early May, prices have resumed their upward trajectory.
RAC Warning for Drivers
Simon Williams, head of policy at the RAC, described the recent increase as "bad news for drivers ahead of the bank holiday" and cautioned that further rises are imminent. "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 offered a more optimistic outlook for diesel, noting that wholesale prices have fallen significantly since 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 added.
Fuel Duty Policy Changes
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 following five years.
Financial Impact on Motorists
The RAC Foundation, a motoring research charity, estimates that rising pump prices since the Middle East conflict began have cost motorists an additional £2.9 billion. This figure is based on average daily pump price increases and last year's fuel consumption rates.
