UK petrol prices are expected to climb to their highest level of the year this weekend after renewed US attacks on Iran pushed global oil and fuel markets higher.
The AA said the average price of petrol reached 159.5p per litre on Thursday, up more than 3p during the week.
Prices are now approaching the previous 2026 high of 159.7p per litre, recorded at the end of May, and could exceed that level as retailers pass higher wholesale costs on to drivers.
Diesel averaged 178.2p per litre on Thursday, although this remained below the 2026 peak of 192.4p, reached in mid-April.
Fuel prices had previously eased after the US and Iran agreed a memorandum of understanding in June, raising hopes of progress towards peace talks. However, renewed American strikes and Iranian retaliation have increased concerns over energy supplies from the Middle East.
Despite the latest increase, petrol remains well below the UK’s all-time record of 191.53p per litre, reached on 3 July 2022 following Russia’s invasion of Ukraine and disruption to global energy markets.
The rise will add further pressure to household finances during the summer travel period. The AA expects around 20.5 million UK drivers to take to the roads during the third week of the school holiday season.
Electric vehicle drivers are likely to be less directly exposed to the immediate rise in oil and petrol prices, although electricity and charging costs remain influenced by wider energy-market movements.
RAC head of policy Simon Williams said:
In very unwelcome news for drivers the average price of petrol has hit a new Iran War high of 160p-a-litre having increased more than 9p (9.38p) since falling to a low of 150.59p on 6 July. Diesel has now shot up 14.5p since its low point on 9 July to 179p, but fortunately is still 12.5p below its conflict high of 191.54p on 15 April.
This means the cost of filling a family-size car with unleaded has gone up to £88 while a tank of diesel is £10 more. The wholesale price of petrol eased very slightly this week but it is not enough to make a difference at the pumps. Diesel looks set to keep on rising and is likely to reach 185p a litre in the next few weeks, barring any major oil price reduction.
