Petrol prices could rise even higher after hitting £1.50 a litre
UK petrol prices could spike even further over the next few months as tensions escalate in the Middle East, while forecourt owners continue to protect their margins.
Despite the AA motoring group revealing on Tuesday that petrol prices have hit an average of 150.1p a litre across the UK – the highest level in almost six months – motoring and economic experts suggest prices could rise even further in the run up to the summer.
Caroline Bain, chief commodities economist at Capital Economics, said: “If tensions in the Middle East worsen then, yes, oil prices will rise and so will pump prices. At the very least it is safe to say petrol prices will stay this high until June.”
The average price of a litre of diesel has also reached its highest level since November 2023 at 158.3p.
Motoring group RAC told i that any short-term rise in petrol prices “depends massively on the margins fuel retailers decide to take at the pumps”.
A spokesperson said: “At the beginning of April, oil hit the $90 a barrel mark as the Middle East conflict escalated, but since then prices have eased slightly. This will translate into lower wholesale prices for UK retailers, but the amount they carry over for drivers versus the amount they take as profit is at their discretion.”
According to the AA, Government data show that petrol prices have been higher than at the same time a year ago for the fourth week in a row .
Luke Bosdet, the AA’s spokesman on pump prices, said: “Inflation has been heading downwards at quite some speed but petrol’s rebound to 150p a litre leaves a big boulder in the road.”
When asked if prices might rise further, the AA told i: “Inflation is falling but demand is increasing and there is still global tension so predicting prices over the medium term is very difficult.”
He added: “Many drivers are dependent on their cars for getting to work, shops and visiting family and friends. Our surveys suggest that when prices at the pumps increase, many drivers cut back on journeys where they can or indeed cut back general household expenditure.
“We encourage drivers to shop around as there is still great discrepancy in pump prices. Up to 15 per cent of fuel can also be saved by slowing down and driving in a smoother manner.”
