Petrol prices have reached a new high since the start of the Iran war and are set to surpass 160p a litre, the RAC has warned.
The average price reached 158.52ppl today (19 May), surpassing the previous high of 158.31ppl on 15 April. It had fallen by more than a penny until the start of May when it began to rise again.
Head of policy Simon Williams said unleaded was “now likely” to increase to at least 160ppl in coming weeks, “unless there’s a dramatic and sustained drop in the price of oil”, which has been above $100 a barrel since late April.
Williams added: “The news that petrol has climbed to a new wartime high comes in a week when the Chancellor is thought to be on the point of scrapping plans to increase fuel duty by a penny in September. This would have been the first step in reversing the 5p fuel duty cut that’s been in place since the Ukraine war. If she decides to keep fuel duty at the current rate of 52.95p per litre, it will be a relief for drivers as our research shows they have been struggling with the higher cost of filling up.”
The RAC and AA also warned that while the price of diesel at the pump has fallen by nearly 6p to 185.92ppl since it peaked in early April, the drop was not commensurate with falling wholesale prices.
“It should really by much lower than it is,” said Williams. “We urge retailers to reflect the savings they’re benefiting from when buying new supply on the forecourt.”
Luke Bosdet, the AA’s spokesman on pump prices said the price hikes were diverting “around £92.5m a week” from potential consumer spending to fuel stations. “That will have a severe impact on tourism destinations and the businesses that depend on the summer visitor pound.”
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