What's happening to UK petrol and diesel prices?

29d ago · UK · primary source: feeds.bbci.co.uk

UK petrol and diesel prices surged to multi-year highs following the outbreak of conflict in the Middle East, with the cost of filling a car rising by up to £27 [1]. Prices have eased slightly but remain volatile as a key global oil shipping route remains closed [1]. Fuel prices began climbing when the US-Israel war with Iran began on 28 February, disrupting energy production and transport across the region [1]. The price of Brent crude oil jumped from $73 to as high as $126 a barrel, its highest level since Russia's full-scale invasion of Ukraine [1]. This volatility pushed average UK pump prices to a peak of 158.3p per litre for petrol and 191.5p for diesel [1]. Analysts note every $10 increase in the oil price pushes pump prices up by roughly 7p a litre [1]. After 46 consecutive days of increases—the longest such run on record—average prices started to ease slightly on 16 April [1]. However, RAC head of policy Simon Williams stated the outlook is 'ominous,' noting wholesale petrol and diesel prices jumped by around 5p a litre recently and are at their highest since the war began [1]. He warned that if wholesale costs remain elevated, further forecourt price rises are 'all but inevitable' [1]. The critical factor for oil markets is the status of the Strait of Hormuz, a chokepoint for about 20% of the world's oil, which has been effectively closed since the conflict started [1]. This closure has kept oil prices above pre-war levels despite a temporary ceasefire [1]. The UK relies heavily on oil imports, with oil making up 35% of its total energy supply [1]. While the government holds more than the required 90 days of net oil imports, the Shell chief warned in March that Europe could face a fuel shortage within weeks due to the Strait's closure [1]. For now, domestic energy bills under the price cap are shielded from these wholesale increases until at least July [1].

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