Petrol prices have surged to record highs following the Iran conflict, prompting the RAC to caution about future price hikes.
The current average price for unleaded petrol stands at 158.52p per litre, surpassing the previous peak of 158.31p in mid-April. Despite a slight decrease in prices until early May, they have been on the rise again.
The surge in Brent crude oil prices since the onset of the Middle East tensions in late February has led to a corresponding increase in petrol and diesel costs.
RAC analysts anticipate a further rise in unleaded petrol prices to at least 160p per litre unless there is a notable drop in oil prices. Brent crude was hovering around $110 per barrel on Tuesday.
Simon Williams, RAC’s head of policy, pointed out that wholesale fuel data suggests unleaded petrol may hit 160p per litre in the upcoming weeks unless there is a significant and sustained decrease in oil prices.
While diesel prices have notably decreased from their peak in early April, currently at 185.92p per litre, the RAC emphasized that prices should ideally be lower. Retailers are urged to pass on the savings from purchasing new supply to consumers at the pump.
According to a recent report by the Competition and Markets Authority (CMA), the surge in fuel prices is primarily driven by the increased cost of oil rather than retailers widening profit margins.
Although the CMA found stable price differences between fuel purchase and selling prices since the conflict began, it did identify higher fuel margins for a minority of retailers in March, promising further investigation.
Sarah Cardell, CMA’s chief executive, highlighted the pressure on UK households and businesses due to rising fuel prices driven by the Middle East conflict. The CMA aims to ensure that price increases reflect genuine cost pressures and maintain vigilance to ensure any cost reductions are swiftly passed on to consumers.
