Average UK fuel prices have reached their highest levels in four years, with petrol at 170.54p per litre and diesel at 192.86p per litre, according to the RAC. The surge follows a rise of nearly £5 in the cost of filling a family car since early September, bringing the total to £94 for petrol and £106 for diesel for an average vehicle.
The increase coincides with oil trading consistently above $100 a barrel, a level last seen in mid-2022. RAC head of policy Simon Williams warned that prices are likely to climb further, noting that fuel duty is set to rise from January unless the government intervenes. "The pressure on the Chancellor to act to support households, so many of whom are dependent on the car, is building," Williams stated.
Geopolitical tensions in the Strait of Hormuz have contributed to the volatility in oil markets, with recent incidents involving Iranian-backed groups and U.S. military responses. The UK Maritime Trade Operations Centre reported that a vessel was struck by an unknown projectile in the Strait of Hormuz on Monday, though no damage or environmental impact was reported. The Pentagon’s Inspector General also acknowledged that the conflict in the region has led to munitions shortfalls for U.S. forces, citing bottlenecks in production and procurement.
In response to the fuel price surge, calls for policy intervention have grown. Williams emphasized that freezing fuel duty at its current level could provide immediate relief to drivers. "There is a strong argument for leaving it at its current level, at least until the end of the Parliament," he said.
The rising costs come as households face broader economic pressures, with inflation and energy bills already straining budgets. The RAC’s latest data underscores the immediate financial burden on motorists, particularly those in rural or less connected areas where car dependency is higher.
Oil market analysts attribute the sustained high prices to a combination of supply constraints, geopolitical instability, and strong demand. Brent crude, the global benchmark, has remained above $100 a barrel in recent weeks, reflecting ongoing concerns over disruptions in key shipping lanes and production cuts.
While the UK government has not yet announced measures to address the fuel price hike, the RAC and other motoring organizations continue to urge policymakers to consider temporary relief measures. The situation remains fluid, with further price increases possible if oil prices continue their upward trend.