Petrol prices have reached a new peak due to the Iran conflict, prompting the RAC to caution about potential further increases in the future.
Currently, the average cost of unleaded petrol stands at 158.52p per liter, surpassing the previous high of 158.31p per liter recorded on April 15. After a slight decrease in prices until early May, petrol costs have been steadily climbing again.
The surge in the price of Brent crude oil following the onset of the Middle East turmoil at the end of February has led to a corresponding spike in petrol and diesel prices.
The RAC anticipates that unleaded petrol could rise to at least 160p per liter unless there is a substantial drop in oil prices. Brent crude oil was at approximately $110 per barrel on Tuesday.
RAC’s head of policy, Simon Williams, expressed concern over the likelihood of unleaded prices hitting 160p per liter soon, given the sustained high oil prices. On the other hand, diesel prices have noticeably decreased from their peak in early April, currently at 185.92p per liter.
Despite the decrease in diesel prices, the RAC emphasized that fuel costs should be lower, urging retailers to pass on their savings from purchasing new supply to consumers.
An investigation by the Competition and Markets Authority revealed that the surge in fuel prices was primarily driven by the increased cost of oil, rather than retailers hiking up profit margins. While the price difference between what retailers pay and what they charge remained relatively stable, some retailers saw increased margins in March.
Sarah Cardell, the CEO of CMA, highlighted the impact of Middle East conflicts on fuel prices and emphasized the need for cost pressures to be reflected accurately. The CMA’s ongoing monitoring aims to ensure that any decrease in costs gets promptly transferred to motorists.
