PETROL prices have reached their highest level since 2022 as Brits feel the heat at the pumps and experts warn “the race to £2 per litre is on”.
Fuel prices in the UK have reached 159.89p on average, new figures show. It’s the highest level since November 2022 when prices were cooling from a high of 191.55p in 2022 due to Russia’s invasion of Ukraine.
The war in Iran, which started at the end of February this year, led to a high of 158.78p in May – but since then prices have been cooling.
Petrol prices fell to a low of 149.8p a litre in early July but they have since been rising again. And they have now reached the highest level of the year.
Donald Trump earlier this week promised that new talks on ending the conflict with Iran would begin on Monday, after the US president called off what he said would have been “massive” strikes on the country.
He has today given Iran a final chance for talks after its foreign ministry denied they were negotiating with the US.
Global oil prices have fallen to under $80 today, way below the height of $118 in late April, but still higher than $72 a month ago.
Race to £2 per litre
Paul Denley, CEO at London-based Oakham Wealth Management, gave some tips on how to save money on fuel.
He added: “Petrol’s climb towards 160p reflects two familiar forces: a firmer oil price and a weaker pound. Because crude is priced in dollars, sterling weakness feeds through to the pump, while retailers’ ‘rocket and feather’ pricing means prices tend to rise faster than they fall.
“Could we revisit 2022’s 191p? Only if a major geopolitical shock disrupts supply. Without that, the more likely picture is grinding pressure rather than another spike, with the mid-160s plausible if oil and sterling remain where they are.
“For drivers, the savings are unglamorous but effective: avoid unnecessary trips, shop around using supermarket forecourts and price comparison apps, steer clear of motorway services, keep tyres properly inflated, and drive more smoothly. Small savings compound when fuel stays expensive.”
Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, fears we could reach £2 a litre.
He added: “The race to £2 per litre is on, and drivers will fear they have seen this film before. Pump prices are rising because oil markets are nervous, the pound is vulnerable, and retailers are often quicker to pass on pain than relief. Whether petrol gets back towards 2022’s nightmare levels depends on geopolitics and wholesale costs, but households should not assume this spike is temporary.
“For drivers, the boring tips matter: compare local forecourts, avoid motorway services, keep tyres properly inflated, clear unnecessary weight from the boot and drive smoothly rather than aggressively. None of that beats a lower oil price, but it can soften the blow when every fill-up feels like a raid on the weekly budget.”
Disruption
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said he expects average prices to sit around 160p for a while yet.
He added: “Petrol prices in Truro, Cornwall have hit 161.9p a litre for unleaded, well below the 191.55p record set during the 2022 energy crisis, but still the highest we’ve seen since. The culprits this time: rising Brent crude, Middle East tensions, and heavy summer travel demand.
“Wholesale cost rises take a few weeks to work through to the pumps, so expect average prices to sit around 160p for a while yet, though the continued 5p fuel duty freeze is at least keeping tax off the list of things pushing prices higher. A few ways to soften the blow.
“Steer clear of motorway service stations as they charge a hefty premium as standard and use a price-comparison app to find the cheaper local options. Driving habits matter too: smooth acceleration, no unnecessary idling, correct tyre pressures, and clearing out boot clutter or removing a roof rack can cut fuel consumption by over 10%.”
Nouran Moustafa, Practice Principal & IFA at Roxton Wealth, said you can save nearly £3 on your tank if you shop around.
She added: “Petrol nearing 160p is where geopolitical headlines land in household budgets. The new Prime Minister can announce incentives on TikTok, but governments do not create free money; taxpayers eventually fund the bill. However, this particular jump is not primarily a Westminster story.
“It is being driven by renewed Middle East supply risk, higher crude and refining costs, and the lag before wholesale movements reach forecourts. The mid-160s is plausible if tensions flare again or sterling weakens. A return towards 190p would require a much more severe and sustained disruption.
“Drivers should compare local prices, avoid motorway stations, keep tyres correctly inflated and combine journeys. High fuel costs are effectively a tax on movement, work and family life. Loyalty can be expensive: a 5p difference saves £2.75 on a 55-litre fill.”
Photo by Austin Loveing on Unsplash.
