The RAC has issued a stark warning to motorists that the highest petrol prices are yet to come, as wholesale fuel costs surge to levels not seen since the onset of the Iran war. Wholesale petrol and diesel prices jumped by approximately 5p per litre last week, a rise that has not yet been fully reflected at the pumps.
Current Fuel Prices
As of Tuesday, petrol was priced at 157p per litre, while diesel stood at 188p per litre. The RAC estimates that a 5p per litre increase adds around £3.30 to the cost of filling a small to medium-sized car. If oil and wholesale fuel prices remain elevated in the coming weeks, further price rises at forecourts are "all but inevitable," the organisation warned.
Market Analysis
Experts suggest that current oil prices do not fully capture the tightness of the physical market. The ongoing conflict in Iran continues to disrupt global supply chains, pushing wholesale costs higher. Drivers are advised to shop around for the best deals, as prices may vary significantly between stations.
The RAC's warning comes amid broader concerns about the cost of living, with fuel costs being a major driver of inflation. Prime Minister Keir Starmer has also warned that Iran's attempts to destabilise British society "will not be tolerated," highlighting the geopolitical tensions behind the price hikes.
