Why are UK fuel prices rising again?

Breaking news from the markets: Why are UK fuel prices rising again? Image source, Maskot/Getty ImagesPublished2 March 2026Updated 6 minutes agoUK fuel prices are going up again after the collapse of peace talks to end the US-Israel war with Iran. When the conflict began on 28 February, fuel prices surged as the fighting severely disrupted the production and transportation of energy across the Middle East.

Prices then nosedived when US and Iran agreed to a framework deal to end the fighting in June but have started increasing as tensions resurface. Motoring firm RAC's head of policy Simon Williams said "the increases are likely to keep coming thick and fast". How do wholesale oil prices affect the cost of petrol and diesel at the pump?

Economic Details

Crude oil is a key ingredient in petrol and diesel, which means that higher wholesale costs make filling up a car more expensive. Analysts say every $10 (£7. 53) increase in the oil price pushes up pump prices by roughly 7p a litre.

Since the war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile. Before the conflict, Brent was about $70 a barrel, but the conflict saw it peak at above $120. In early July, after the framework deal was signed, prices fell back to the near $70 a barrel mark, but have climbed back up again since to around $87 a barrel.

What has happened to petrol prices in the UK? According to the RAC, the average price of petrol reached an Iran war peak of 159. 53p a litre on 28 May, while diesel's highest average price during the conflict was 191.

Analyst Views

54p a litre on 15 April. In early July, the RAC said the average price of diesel sank to a low of 150. 50p per litre for petrol and 164.

52p per litre for diesel. Since then the prices have been rising and according to its latest data, petrol now costs 152. 54p a litre while diesel costs 167p a litre.

The RAC's Williams says they are likely to continue rising because of the jump in the Brent crude price. Despite the conflict, petrol and diesel prices remain below the levels reached in the summer of 2022 following Russia's invasion of Ukraine, when petrol reached 191. 5p a litre and diesel hit 199p.

Economists are analysing what the news means for the markets.