PETROL prices are now over 144p per litre in the UK – a 12p rise since the start of Iran war – as experts warned it was a “direct hit to household budgets”.
Average petrol prices in the UK are now 144.16p per litre. This is the highest price since July 2024, the latest data shows. It has risen over 12p per litre since the start of the war in Iran on 28 February.
Average diesel prices in the UK are now 166.88p per litre. This is the highest price since March 2023. It has risen over 21p per litre since the start of the war.
This comes as the war in the Middle East shows no sign of abating with fresh strikes by Israel in Iran and the price of oil again rose to over $100 a barrel, after plunging on Monday.
Petrol prices will remain elevated
Rob Mansfield, Independent Financial Advisor at Tonbridge-based Rootes Wealth Management, said prices won’t come down until oil can flow freely in the Middle East.
He added: “With both Iran and the US looking to dig in, it seems likely that petrol prices will remain elevated and may well even go higher.
“Ultimately we need oil flowing from the Middle East to stabilise the price of oil and so if the US can’t stop Iran disrupting the supply, prices are unlikely to come down.”
Anita Wright, Chartered Financial Planner at Ribble Wealth Management, said rising oil prices could spark a spike in inflation.
She added: “Petrol prices are high because this is no longer just an oil market story, it is a broader supply, liquidity and confidence shock. Once markets fear disruption to oil flows, crude prices rise quickly and that feeds through to the pumps.
“The deeper problem is that the conflict is hitting an already fragile system: liquidity is tighter, input costs are rising, and energy is the base layer for almost everything else in the economy. If disruption persists, oil does not just drift higher it can reprice violently, with wider inflationary consequences.”
A direct hit to household budgets
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said she expects petrol prices to keep rising.
She added: “Petrol prices are high because oil prices have surged and markets are building in a war risk premium. When conflict sits around key energy routes, especially in the Middle East, the cost feeds through fast and drivers feel it at the pump almost immediately.
“If oil stays above $100 a barrel and the conflict drags on, I would not be surprised to see petrol push further into the high 140s, with diesel staying even more painful. For people who rely on their car to get to work, do school runs or run a business, this is not a lifestyle issue, it is a direct hit to household budgets.
“To bring prices under control, the main thing that needs to happen is de-escalation. Markets need confidence that supply routes are stable again. Until then, every new strike risks feeding more fear into oil, and that means more pressure on motorists, inflation and the wider economy.”
How high could it go?
Rohit Parmar-Mistry, Founder at Burton-on-Trent-based Pattrn Data, said haulage and food prices will go up.
He added: “This is the ugly mix of geopolitics and fragile supply chains hitting households fast. When oil spikes, we feel it within days because the UK is exposed to global crude, tight refining capacity, and a retail market that moves up quickly and down slowly.
“How high could it go? If crude stays above $100 for more than a fortnight, you can easily see another 5 to 10p a litre on petrol, and diesel remains the bigger worry for haulage and food prices. The second-order effect is what sticks: businesses reprice everything once fuel becomes a cost shock.
“To get prices under control, we need calm in the region, but also less domestic opacity. Publish real-time margin data, enforce competition rules on forecourts, and stop pretending short-term duty tweaks fix structural dependence. The long game is demand reduction and better resilience, not panic discounts.”
