UK petrol prices have risen to their highest level since the Iran war began in February, adding further pressure to business running costs.
The average price of petrol reached 163.6p per litre, according to the RAC, with diesel now at 184.99p per litre. Both remain below levels seen in 2022 following Russia’s invasion of Ukraine, when petrol hit 191.5p and diesel 199p.
Fuel prices are closely linked to wholesale oil costs. Before the conflict, Brent crude traded at around $70 a barrel, but this surged above $120 as fighting disrupted supplies through the Strait of Hormuz, a route that carries roughly a fifth of the world’s oil and liquefied natural gas. A framework peace deal in June briefly pushed prices back towards $70, before the collapse of talks sent them climbing again. Brent now trades at around $94 a barrel.
For business owners with fleet vehicles or delivery costs, rising fuel expenses can quickly affect cashflow and profit margins. A planned 5p rise in fuel duty, due in September, has been postponed until the end of December, offering some short-term relief.
Analysts warn that further price rises could follow in the coming weeks, meaning businesses reliant on transport may want to review budgets and pricing accordingly.
RAC head of policy Simon Williams said drivers would “almost certainly start paying noticeably more at the pumps in the coming weeks.”
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