Fuel prices rise as Iran war reignites – how much is a litre of petrol?
Fuel prices are rising again after hostilities between the US and Iran reignited in July. How much will it cost to fill up your car?
Fuel prices are on the rise again as the Iran war has continued to disrupt the oil and gas markets despite a short-lived period of peace from mid-June to early July.
Although oil prices calmed to around $70 when markets believed a peace deal would be reached, the price of a barrel of Brent crude oil has now returned to around $90.
As petrol and diesel are made by enriching crude oil, when oil prices rise so do fuel prices. That means the war has brought the price of petrol to far above the five-year low it started 2026 at.
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The price of a litre of petrol is now around 156.19p. This is around 23p higher than it was before the conflict began on 28 February, but below May’s peak when the average litre of petrol was almost 27p more expensive than before the war.
It means filling up a car with a 50-litre tank will currently cost you around £78.
Meanwhile, the average price of a litre of diesel is 173.15p, around 30p more than it was before the conflict, but down from the April peak when a litre of diesel was 49p higher than pre-war levels. It would currently cost around £87 to fill a 50-litre diesel tank.
The RAC says motor fuel prices are likely to continue increasing.
Why are oil prices volatile?
The price of oil has been incredibly volatile since the start of the war on 28 February. Prices were around $72 before the war and peaked at $114 during May, though stayed between $90 and $110 for the most part.
Oil prices increased because of the volatility the conflict caused in the Middle East, where a large portion of the world’s oil supply originates, threatening global supply lines.
In particular, disruption to trade traffic through the Strait of Hormuz, a narrow waterway between Iran and Oman through which 20% of the world’s oil and gas is transported, led to surging prices as most ships were unable to safely pass through.
When a peace deal seemed to be on the horizon, some ships managed to get through the strait, but since hostilities resumed there has been virtually no traffic through the strait.
What does turbulence in the oil market mean for petrol prices?
Both petrol and diesel are made by processing oil, meaning any price fluctuations in the oil markets will be reflected in the price of fuel.
A good example of this can be seen in 2022, when oil prices soared in the wake of Russia’s invasion of Ukraine and countries across Europe, including the UK, restricted the oil supply available to Russia. Petrol prices spiked to 191.43p per litre in July 2022.
This is similar to what is happening now, although to a lesser extent. A constrained global oil supply is leading to price increases for oil derivatives like petrol and diesel in the UK.
How long the price of oil, and therefore motor fuel, will be elevated depends almost entirely on when and whether a peace deal is reached between Iran and the US and whether shipping will return to normal through the Strait of Hormuz.
If the war sustainably ends, we can expect prices to fall below their wartime levels. But if the war drags on, prices will likely remain high for the foreseeable future.
Where can you find the cheapest fuel?
Supermarkets are often the most cost-effective places to fill up your tank as they benefit from economies of scale when buying in bulk, and are especially incentivised to offer a good deal so customers are attracted to their shops.
This, paired with rewards schemes that many run (such as Nectar at Sainsbury's and Tesco Clubcard) mean supermarkets often offer the best deals for petrol and diesel.
To find the best deals in your local area, it is a good idea to check Fuel Finder, a service provided by the government that shows you live prices in forecourts near you.
You can use this service to find where the cheapest petrol is and refuel there, helping you save some extra cash.
To keep the cost of refuelling low, you should also try to stay away from the pumps at motorway service stations.
This is because service stations have a captive audience of drivers so charge more.
The average UK-wide price of unleaded is 156.19p, but this figure climbs to 178.94p for the average service station, according to the RAC.
