The cost of oil has sharply risen to levels not witnessed in over a year due to ongoing conflict in the Middle East, resulting in increased hardships for UK drivers and subsequent price hikes at fuel stations. Both petrol and diesel prices have seen an uptick following the recent drone and missile strikes by the US and Israel on Iran, which led to the death of Ayatollah Ali Khamenei, Iran’s supreme leader. In retaliation, Iran disrupted shopping traffic in the vital Strait of Hormuz, a key passage for around 20% of global oil supply, causing significant disruptions. The RAC reported a 2.5p per litre increase in petrol prices and a 3p rise in diesel costs since the conflict began.
The surge in oil prices, reflected in the barrel price, is anticipated to impact fuel prices at the pumps. Simon Williams, the head of policy at RAC, shared insights on the potential trajectory of petrol prices amid the ongoing hostilities and military actions abroad. He highlighted the recent surge in oil prices above $81 per barrel, a level not seen since January last year, which may result in petrol prices nearing 136p per litre. Diesel prices, on the other hand, are increasing at a faster pace.
Before the conflict between the US, Israel, and Iran erupted on February 2, 2026, petrol was priced at 132.83p per litre, and diesel at 142.38p. Despite the war starting the next day, petrol and diesel prices remained stable on March 1. However, subsequent days saw slight increases, with petrol rising to 135.20p and diesel to 145.66p as per RAC data, reflecting the impact of rising oil prices.
The average UK petrol price currently stands at 135.20p per litre, with motorway service areas averaging 158.87p. The highest reported price was at an Asda station in Bothwell, near Glasgow, where drivers are now paying a steep 169.9p per litre following a 3p increase. Reports of long queues at petrol stations across the country have emerged, indicating concerns and uncertainties amidst the escalating oil prices.
Amid the price hikes, concerns have been raised against potential profiteering by some petrol stations, with claims of prices exceeding RAC’s figures. Howard Cox of FairFuelUK cautioned against opportunistic price hikes, highlighting instances where fuel stations are selling at escalated prices despite procuring stocks before wholesale rises, suggesting profiteering motives.
The AA has advised drivers against deviating from their refuelling routines despite price increases. President Edmund King emphasized that pump prices are likely to rise in the coming weeks, possibly returning to levels seen at the beginning of the year. He reassured drivers of better fuel efficiency and the slower transmission of cost increases to the pump, noting that supermarkets often maintain lower prices for an extended period. With the government’s fuel finder pump-price transparency initiative, drivers can identify cheaper fuel stations to manage their fuel expenses effectively.
