Global Oil Prices Hover Above $100 as UK Fuel Costs Climb

Fuel prices across the UK are on an upward trajectory once again as geopolitical instability in the Middle East continues to roil energy markets. With Brent crude consistently trading above the $100-per-barrel threshold, motorists are facing renewed pressure at the pump. The volatility of Brent crude has been a defining feature of the conflict, which saw prices surge from a pre-war baseline of $70 to a peak of $120 before briefly retreating toward $70 following a short-lived framework deal in June. As peace talks faltered and hostilities reignited, prices rebounded back into triple digits.

Industry experts note that wholesale fluctuations typically take about two weeks to impact consumer prices. Currently, petrol has reached 167.17p per litre, marking its most significant weekly increase since April, while diesel is retailing at 188.63p per litre. Although these figures remain below the record highs observed during the 2022 Ukraine crisis—when petrol hit 191.5p and diesel reached 199p—the RAC warns that relief remains elusive. Analysts estimate that every $10 rise in the price of a barrel adds approximately 7p per litre to the cost of fuel at the pump.

While the RAC has called for the government to maintain current fuel duty levels through the end of the Parliament, the government previously deferred a planned 5p duty hike until the end of December. Meanwhile, the UK’s fuel regulator has dismissed claims of retailer price gouging, finding no evidence that stations are manipulating strategies to exploit the crisis. Efforts to increase price transparency, such as the Fuel Finder scheme, have been credited by the AA for helping to moderate the speed of price adjustments for consumers.