UK petrol prices have reached a new record high since the start of the Iran war, adding further strain to household budgets. The average price of a litre of petrol now stands at 159.43p, which is 26.6p higher than on 28 February, according to motoring group the RAC.
Diesel prices have fallen slightly from their peak, now at 184.96p per litre, down 6.58p since hitting 191.54p on 15 April. This is the first time diesel has been below 185p since 1 April. A 55-litre tank of petrol for an average family car now costs £87.69, £14.63 more than before the conflict, while the diesel equivalent is £101.73, an increase of £23.42.
The AA noted that wholesale petrol prices have recently fallen, but urged drivers to use price-tracking apps to find cheaper fuel. A spokesman said: “There is a lot of price variety out there if people look – and the cheaper fuel is not always where you think it is.”
Consumers face further bad news as energy regulator Ofgem is expected to announce a 13% rise in the price cap for July to September, adding £200 to the average household energy bill. Analysts warn that oil and petrol prices will remain volatile as long as the Strait of Hormuz remains closed.
According to research by the British Chambers of Commerce (BCC), 80% of firms report an existing or expected impact from the Iran conflict. Over half of businesses surveyed said they are already directly affected, with higher energy bills and shipping costs being the most common concerns. William Bain, head of trade policy at the BCC, said: “The economic reverberations will be felt for many months to come.”
