War in the Middle East has hit people in the UK directly in the pocket in a sudden and brutal way
Drivers of certain vehicles are now paying an extra £27 compared to just 40 days ago. That is the stark figure highlighted by the RAC on Friday morning, as it released its latest analysis of the cost of petrol and diesel in the UK.
Motorists started 2026 in a realtively happy place, with fuel costs sitting at fairly reasonable and stable levels, around the 130p a litre mark for petrol and 140p for diesel. But that stability came to a sudden halt at the end of February when US and Israel began carrying out strikes against Iran.
Since then, the oil price has rocketed as a key shipping route – the Strait of Hormuz – has been severely restricted. Prices dropped back a little this week after news of a 14-day ceasefire was confirmed, but the fragility of the agreement has seen prices rise once more in recent days, meaning there is seemingly little respite on the immediate horizon for drivers.
Speaking on Friday morning, RAC head of policy Simon Williams said: “The average prices of both petrol and diesel have now increased every day for the last 40 days. For diesel this is a new record for consecutive daily prices rises since 2015 and for petrol it matches the run of rises seen at the end of June 2022.
“A full tank of diesel for a 55-litre family car is now £105.22, up £27 since the end of February. The cost for a similar petrol car is now £87, £14 more than it was before the conflict began.”
However, Mr Williams said there was a hint of optimism in the air that rises have come to a stop following the ceasefire.
He added: “More positively, as we predicted earlier this week, the rate of price increases has slowed due to oil falling back below $100 for the last two days.
“This has reduced wholesale costs, which should, if sustained, lead to the price of petrol coming down.
“So, as things stand, we really shouldn’t see unleaded rise any further for the time being and the record diesel price of 199p now shouldn’t be surpassed.”
It’s likely that drivers can expect to see the ‘rocket and feather’ effect in full swing. This is where retailers are quick to pass on rises in wholesale costs, but slow to pass on falls.
Fuel is particularly prone to this. However, the Government has said that it would be keeping a close eye on fuel retailers to ensure that they are giving motorists a fair deal at the pumps.
