Petrol prices have reached a new peak as a result of the Iran conflict, prompting the RAC to predict further price hikes. Unleaded petrol now costs an average of 158.52p per litre, surpassing the previous high of 158.31p per litre in mid-April. Prices had briefly dropped before resuming an upward trend at the beginning of May.
The surge in Brent crude oil prices since the conflict in the Middle East began in late February has led to a corresponding increase in petrol and diesel costs. The RAC anticipates that unleaded petrol could climb to at least 160p per litre unless there is a significant drop in oil prices, which stood at around $110 per barrel on Tuesday.
According to RAC’s analysis of wholesale fuel data, diesel prices have notably decreased since peaking in early April. Diesel now stands at 185.92p per litre, marking a 6p drop from its highest point. Despite this decrease, the RAC emphasized that the current diesel prices should be lower and urged retailers to pass on their savings to consumers.
An investigation by the Competition and Markets Authority (CMA) revealed that the spike in fuel prices is primarily driven by the escalating cost of oil rather than retailers increasing their profit margins. The CMA noted that the price differentials between wholesale and retail fuel prices have remained relatively stable since the conflict began. However, the watchdog identified heightened fuel margins for some retailers in March and pledged to investigate this further.
CMA’s Chief Executive, Sarah Cardell, stated that the conflict in the Middle East has significantly impacted road fuel prices, putting pressure on households and businesses in the UK. The CMA is closely monitoring these price increases to ensure they reflect genuine cost pressures and to ensure that any reductions in costs are promptly passed on to consumers.