Petrol hits highest price since start of Iran war

Key developments are emerging from the global stage. Petrol hits highest price since start of Iran war9 minutes ago Share Save Add as preferred on GoogleOliver SmithBusiness reporterMaskot/Getty ImagesThe average price of unleaded petrol has risen to 158. 52p a litre, its highest level since the start of the Iran war, according to the RAC. Petrol and diesel prices surged when the the conflict began on 28 February, with the production and transportation of energy across the Middle East slowing or stopping entirely due to missile strikes and drone attacks.

The price of petrol last peaked at 158. 31p on 15 April, falling by more than a penny until the start of May when it began rising again, the RAC said. The motoring organisation also said unleaded was likely to increase to at least 160p a litre in the coming weeks unless there was a "dramatic and sustained drop" in the price of oil.

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Brent crude - the global benchmark for wholesale oil prices - is currently trading at about $111 a barrel. Before the conflict, Brent was trading at about $73 a barrel. That in turn has pushed up prices at the pump.

The price of unleaded petrol was 132. 83p a litre on average at the start of the conflict. The average price of diesel was 142.

"The news that petrol has climbed to a new wartime high comes in a week when the chancellor is thought to be on the point of scrapping plans to increase fuel duty by a penny in September," said Simon Williams, RAC head of policy. "This would have been the first step in reversing the 5p fuel duty cut that's been in place since the Ukraine war. If she decides to keep fuel duty at the current rate of 52.

What Experts Say

95p per litre, it will be a relief for drivers as our research shows they have been struggling with the higher cost of filling up. "The Treasury has said it does not comment on tax speculation. Williams said that the outlook for diesel was "more positive" as the wholesale price has reduced significantly since it peaked in early April.

But while the price of diesel at the pump had fallen to its lowest since the start of last month, he added: "it should really be much lower than it is". "We urge retailers to reflect the savings they're benefiting from when buying new supply on the forecourt," he said.

The development has drawn wide international attention, with diplomatic circles watching closely.