Diesel prices have reached a peak not seen in 16 months due to the ongoing conflict in the Middle East, according to recent data. The RAC reports that the average cost per liter of diesel at UK fuel stations has climbed nearly 6p since Saturday, now standing at 148p.
This price level has not been observed since the middle of August 2024. Meanwhile, average petrol prices have also surged by almost 4p per liter to 137p. These increases translate to an additional cost of £2 for filling up a standard 55-liter family car with petrol and around £3.30 for diesel vehicles.
The disruption to tanker traffic in the Middle East has triggered a spike in oil prices, impacting wholesale fuel prices significantly. Brent crude oil prices have surged by approximately 21% in the past week, surpassing 88 US dollars (£66) per barrel by Friday.
Simon Williams, the head of policy at RAC, stated that while wholesale costs for retailers acquiring new stock have risen, it typically takes two weeks for these price fluctuations to reflect at the pumps. Brent crude oil reached 85 US dollars (£64) on Thursday, a level not seen since July 2024.
Williams added, “If the barrel price remains at this level or continues to rise, further fuel price hikes are inevitable. Despite the rapid rate of increase, we are still far from the record prices of 2022 when petrol averaged 191.5p and diesel 199p.”
An analysis conducted by the Energy and Climate Intelligence Unit (ECIU) on the historical correlation between oil and fuel prices revealed that oil trading at 100 dollars (£75) per barrel could push petrol prices to 150p per liter. Earlier this week, the AA reassured drivers that there was no urgency to deviate from their refueling routines.
In response to warnings about escalating fuel costs, long queues have been observed at petrol stations across the UK, with some stations experiencing fuel shortages.
Iran’s retaliatory actions, which disrupted shipping in the Strait of Hormuz—a vital route responsible for around 20% of the world’s oil and gas supplies—have led to hundreds of ships being stranded outside the strait due to attacks in Gulf waters, raising concerns about the potential impact on UK fuel prices.
