UK Petrol Prices Hit Highest Level Since Iran War Begins
The average cost of petrol in the UK has reached 160p per litre, a significant increase from its lowest point since the start of the Iran war. The rise is largely attributed to fluctuations in global oil prices, which have surged due to the ongoing conflict between Iran and other Middle Eastern countries.
According to motoring group the RAC, the wholesale price of Brent crude, the global benchmark for oil prices, has been volatile over the past few months. As a result, every $10 (£7.44) per barrel increase in the oil price pushes up pump prices by roughly 7p a litre. This means that filling up a car with petrol now costs around £1.08 more than it did before the conflict.
The Iran war began on February 28 and has had a profound impact on global energy markets, leading to increased tensions between major powers in the region. The fighting severely disrupted oil supplies across the Middle East, limiting global production and driving up prices at the pump.
As news of further conflict drives up prices, analysts say that every $10 (£7.44) per barrel increase in Brent crude pushes up petrol prices by roughly 7p a litre. This has resulted in significant price increases for UK motorists over the past few months.
In early July, after the framework deal was signed to end the war, prices fell back to near the $70 a barrel mark. However, when the peace talks collapsed and tensions escalated again, prices climbed back up to above $100 a barrel. This has led to ongoing price increases for UK petrol drivers.
The RAC’s head of policy Simon Williams stated that diesel remains below its peak of 191.54p per litre it reached on April 15. However, the average price of diesel is now around £178.97 per litre, with prices likely to reach 185p a litre in the next few weeks, barring any major oil price reduction.
Fuel retailers have denied accusations of price gouging during the conflict, citing that they are not actively changing their pricing strategies to take advantage of the crisis. However, government schemes such as Fuel Finder allow drivers to compare fuel prices offered by petrol stations across the UK, highlighting the speed at which prices have fallen in response to the scheme.
The impact of the Iran war on global oil supplies has been significant, with about 20% of the world’s oil and liquefied natural gas normally passing through the Strait of Hormuz. Even if a deal is agreed to reopen this strait, experts warn that it will take time before normal levels of shipping resume.
The UK relies heavily on oil imports from the US and Norway, with most coming from these countries due to its reliance on global markets. The price of oil on the global market determines how much the UK pays for it, making fluctuations in prices a significant concern for motorists.
As tensions between Iran and other Middle Eastern countries continue to escalate, it is likely that petrol prices will remain high for some time. While diesel remains below its peak point, the average cost of petrol has reached 160p per litre, with prices expected to rise further if global oil supplies are disrupted again.
Based on reporting from BBC Top Stories.
