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UK petrol averages 160p a litre, highest since Iran war began
Analysts estimate each $10 move in Brent crude adds about 7p a litre to pump prices, and diesel is also up to 179.0p.
UK petrol prices have climbed to the highest level since the start of the Iran war, according to motoring group the RAC. The average cost of unleaded reached 160p per litre, with the rise tied to elevated wholesale oil prices.
BBC Business reports that fuel costs tend to track changes in the wholesale price of oil, which surged after the Iran conflict began on 28 February due to severe disruptions to supply in the Middle East. Prices fell after a US and Iran framework deal was agreed in June, but have risen again since peace talks collapsed.
The article says Brent crude, the global benchmark, has been highly volatile since the war began. Before the conflict it was about $70 a barrel, it peaked above $120, fell back near $70 after the framework deal, then climbed again to above $100 before stabilizing around $90.
BBC Business also notes that diesel remains below its earlier peak, but has increased to 178.97p per litre. The RAC head of policy Simon Williams said diesel could reach around 185p per litre in the coming weeks, barring a major reduction in oil prices. The outlet adds that market changes in wholesale crude typically take about a fortnight to show up at the pump.
Latest closeWTI crude $86.80 ▲3.8%|Brent $90.12 ▲1.2%