UK drivers are facing a significant financial hit due to the ongoing Iran conflict, with petrol prices soaring and costing motorists an extra £15 million per day. The surge in prices has seen the cost of unleaded petrol rise by over 6p per litre in recent weeks, adding more than £3.30 to the expenses of filling up a typical family vehicle.
Following Iran’s declaration to block oil passage through the Strait of Hormuz, the average price of unleaded E10 fuel in the UK has climbed close to 140p per litre, while diesel prices have surged to over 157p per litre. The escalating prices have led to an increase of £12.9 million per day in fuel costs since the conflict began on February 28, with projections indicating the figure could surpass £15 million based on current trends.
The disruption in the global oil market caused by Iran’s actions in the Strait of Hormuz, a crucial route for oil transportation, has led to a halt in shipping activities, resulting in supply concerns and a sharp upturn in prices. The US military’s response to the situation, including attacks on Iranian vessels and plans to escort oil tankers, has not fully resolved the crisis, suggesting that normalcy may only return once the conflict subsides.
The Competition and Markets Authority (CMA) has intensified its monitoring of petrol and diesel prices in light of the Middle East turmoil, emphasizing the need for price increases to reflect genuine cost pressures. Retailer data analysis reveals significant price disparities among main petrol station operators, with notable increases observed across various brands.
Essar, a major petrol station operator in northwest England, has implemented substantial price hikes, attributing the larger increases to the end of a promotional pricing period before the Iran conflict. Despite the price adjustments, Essar asserts that its current fuel prices remain competitive compared to the national average, affirming its commitment to offering customers cost-effective pricing options.
