Diesel prices have reached a peak not seen in 16 months due to the ongoing conflict in the Middle East, according to recent data. The RAC reports that the average cost of a liter of diesel at UK petrol stations has risen by nearly 6p since Saturday, now standing at 148p.
This price level has not been observed since mid-August 2024. Meanwhile, average petrol prices have also climbed, increasing by almost 4p per liter to 137p since Saturday. These price hikes translate to an additional £2 for filling up a typical 55-liter family car with petrol and around £3.30 for diesel vehicles.
The disruptions to tanker traffic in the Middle East have led to a surge in oil prices, impacting wholesale fuel prices significantly. Brent crude oil prices have surged by approximately 21% in the past week, surpassing 88 US dollars (£66) per barrel on Friday.
Simon Williams, the head of policy at RAC, mentioned that while wholesale costs have risen for retailers acquiring new stock, it typically takes about two weeks for these price changes to reflect at the pumps. The price of Brent crude surged to 85 US dollars (£64) on Thursday, a level not seen since July 2024.
Williams added, “If the barrel price remains at this level or rises further, we can expect more increases at petrol stations. Although the price surge has been rapid, we are still far from the record prices of 2022 when petrol averaged 191.5p and diesel 199p.”
An analysis by the Energy and Climate Intelligence Unit (ECIU) on the historical connection between oil and fuel prices indicated that if oil traded at 100 US dollars (£75) per barrel, petrol prices could reach 150p per liter. The AA stated earlier this week that drivers need not deviate from their refueling routines.
Following warnings about escalating fuel costs and some stations running out of fuel, long queues have been spotted at petrol stations across the UK.
The Strait of Hormuz, a critical passage for around 20% of the world’s oil and gas supplies, has faced disruptions due to retaliatory attacks by Iran, leading to concerns about the potential impact on UK fuel prices. Numerous ships have been held outside the strait following the attacks in Gulf waters.