How high could UK petrol and diesel prices go?

What’s Happening

Here’s the thing: For every $10 rise in oil prices, motorists face paying roughly 7p per litre more in the UK.

How high could UK petrol and diesel prices go? 1 hour ago Save Faarea Masud Business reporter Save Motorists in the UK are facing higher fuel costs as the US-Israel war with Iran continues. (wild, right?)

Wholesale oil and gas prices have surged since the conflict began on 28 February, with the production and transportation of energy across the Middle East slowing or stopping entirely because of missile strikes and drone attacks.

The Details

Higher energy prices may lead to a rise in the cost of other goods - but it often shows up first at the fuel pump. How quickly will oil prices affect petrol and diesel?

Crude oil is a key ingredient in petrol and diesel, meaning higher wholesale costs make filling up a car more expensive. Since the war began, Brent crude - which is the global benchmark for oil prices - has risen by 45%, from $73 a barrel to $106 as of Monday, 9 March.

Why This Matters

According to analysts, every $10 increase in the oil price pushes up pump prices by roughly 7p a litre. The most recent data from the RAC motoring organisation shows that since the war began, average petrol prices have risen by 4. There is normally a time lag, with movements in oil markets taking about a fortnight to feed in to fuel prices.

Market watchers are paying close attention to developments like this.

Key Takeaways

• “Unleaded is almost certainly going to reach an average of 140p in the next week or so,” dropped Simon Williams, head of policy at the RAC.
• “While diesel looks highly likely to climb to at least 160p a litre.
• ” If oil stays at around $100, the RAC predicts that petrol could rise towards 150p a litre while diesel could reach almost 180p.
• Where does the UK get its oil and gas from?

The Bottom Line

The price of oil on the global market determines how much the UK pays for it. Though the UK does get oil from the North Sea, most of that is exported for refining elswhere.

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