The RAC warns that the price of fuel in the UK could climb to a new high over the coming weeks after the price of a barrel of oil pushed past the $100 mark.
The automotive services company revealed that pump prices have 'surged' since hostilities resumed between the USA and Iran following a short-lived truce. As a result of the reignition of the conflict, the crucial Strait of Hormuz has been closed. This has drastically slowed down the vital shipping lane which carries around 12% of the world’s trade, including a fourth of global container traffic.
Oil price rises 6% to $100 a barrel
Vital oil shipments have also been put at risk by continued attacks on freight in the region. Because of this, the price of Brent crude oil has swelled by more than 6% to around 100 dollars a barrel. This is the highest level reached since May before the USA and Iran reached a preliminary peace agreement, which has since ended.
Simon Williams, RAC head of policy, said: "With oil breaching the $100-mark for the first time in two months, prices at the pumps have surged again since yesterday, taking the cost of filling up back to a level last seen in mid-June – something we all hoped we’d seen the back of."
Petrol and diesel prices surge
Mr Williams continued: "The average price of unleaded jumped by more than half a penny and is now up nearly 6p (5.6p) a litre since 6 July to 156.19p. Diesel, which went up by another penny, has undergone an even sharper rise at almost 9p (8.6p) in just over two weeks to the point where it’s averaging 173.15p. Since the Iran war lows, this translates to percentage increases of 4% and 5% respectively."
As it stands, the cost to fill an average-sized petrol-powered car is £86, or £95 for a diesel equivalent. "Unless the hostilities end soon, it’s hard not to see the price of petrol reaching a new Iran war high," added Williams.
