UK Petrol Prices Hit Highest Level Since Iran War Began

The price of unleaded petrol in the UK has hit 160p a litre, the highest level since the Iran war began, the BBC reported on July 31. Motoring group the RAC attributed the rise to elevated global oil prices driven by renewed Middle East tensions.

The Numbers

The average UK petrol price has climbed from around 145p a litre in May to 160p in late July, with diesel tracking similar increases. The RAC said the rises were almost entirely driven by wholesale oil prices, with retailer margins and taxes largely unchanged. Brent crude has been trading above $90 a barrel, well above the pre-Iran-war baseline.

"UK petrol prices hit highest level since Iran war began. The price of unleaded hits 160p a litre, according to motoring group the RAC, as oil prices remain elevated," the BBC reported.

What's Driving It

Threats to oil tankers in the Middle East have reached their worst level since the war began, analysts told the BBC. Disruptions to alternative shipping routes have made tanker traffic more complex, and several producers have rerouted barrels at higher cost. The market has been further shaken by reports that the US paused planned strikes on Iran, though the underlying tensions remain.

What's Next

The UK fuel theft - where petrol is taken without payment - has also risen sharply, with the BBC reporting that almost £200,000 of fuel is being stolen from UK forecourts every day since the war began. Several supermarket chains have introduced stricter pre-pay rules in response. The Treasury has so far resisted calls for a fuel duty cut, citing fiscal constraints.