Prices have broken £2 a litre at some forecourts (Image: HENRY NICHOLLS, AFP via Getty Images)
UK motorists are receiving some welcome news for the first time since the Iran war erupted at the end of February. The US and Israel’s strikes on Iran sent global oil prices surging, with costs at British petrol stations climbing sharply as a direct consequence.
From relatively steady prices at the beginning of the year, with both fuels sitting in the 130p to 140p range, the impact was swift and severe, with petrol prices heading towards 160p and diesel pushing north of 190p, adding a considerable sum to the cost of filling up a tank. However, a fragile ceasefire has seen oil prices fall back below $100 dollars per barrel, though they remain significantly higher than before the latest conflict broke out.
The primary driver behind the surge in oil prices was the closure of the Strait of Hormuz, a vital shipping lane for the world’s energy supply. It remains heavily restricted due to a US blockade and Iranian efforts to control vessel passage, making it a crucial factor in determining what lies ahead for fuel prices.
On Friday, Prime Minister Sir Keir Starmer pledged he would “do everything I can” to ease the burden of the Iran war on the British public and secure the reopening of the Strait of Hormuz.
When quizzed on the purpose of Friday’s gathering with fellow world leaders in Paris, the Prime Minister told reporters: “It is very important that we build a coalition of countries around the principle that the ceasefire should be permanent, there should be a deal, and that the Strait of Hormuz is open. It is in all of our interests to do that, because what’s happening in the war in Iran is affecting each of our economies.
The conflict has added around 30p to a litre or petrol and 50p to diesel (Image: Carl Court, Getty Images)
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“That’s why countries are coming together. Everybody is clear that in order for that to happen, we need a diplomatic and political limb, we need a logistics and economic limb, and we need some military planning, and that is what we’re coming together to do today.
“And it’s the right thing to do, because the longer this conflict goes on, the more the impact, and I’m mindful that people across the United Kingdom, that’s impact on them and the cost of living and I will do everything I can with other countries to alleviate that and get the strait open as soon as possible.”
However, with oil prices remaining consistently below $100 per barrel of late, the relentless rise in fuel costs at the pumps has ground to a halt. The RAC has now confirmed that average prices began to drop yesterday for the first time since the outbreak of the war.
The motoring organisation stated that prices had fallen “a little further today”, with petrol dipping below 158p and diesel dropping beneath 191p for the first time since April 8. Nevertheless, the situation remains precarious and unpredictable.
RAC head of policy Simon Williams said: “After 46 days of rising prices, the cost of both petrol and diesel across the country has finally begun to drop very slightly. Wholesale prices are still lower, so we’re hopeful there will be further reductions amounting to several pence a litre in the coming days.
“After record rises, drivers will be relieved to finally see prices going the other way. While we’re a long way from a return to the prices we had at the start of the conflict, there’s now a glimmer of light at the end of the tunnel.”
