Warning of ‘grim outlook’ for drivers as petrol and diesel prices soar again

DRIVERS are being warned to brace for another hike at the pumps, with fuel prices set to hit levels not seen since the height of the US-Iran conflict. Unleaded rose by 0.6p over the weekend to an average of 157.81p a litre, while diesel climbed by a penny to 175.71p. Since the start of July alone, petrol has increased by more than 6.5p a litre and diesel by 9p, adding £3.50 and £5 respectively to the cost of filling up a family car. RAC head of policy Simon Williams said: “Pump prices continued their inevitable rise over the weekend, with unleaded up another 0.6p to an average of 157.81p and diesel a penny to 175.71p.” Sign up for the Money newsletter Thank you! He added: “The outlook for drivers is pretty grim. It looks highly likely now that petrol will hit 160p a litre – its highest level since the United States/Iran conflict began – and diesel 180p by the end of this week, off the back of an elevated oil price.” Williams explained that diesel is climbing faster than petrol because of Britain’s reliance on imports and rising demand for American diesel. He said: “The price of diesel is rising faster than petrol due to the UK’s heavy reliance on diesel imports, and as a result of increased demand for US diesel.” The rises come as global oil markets remain volatile following the end of a brief ceasefire between the US and Iran. Mr Williams said: “The price drivers pay at the forecourt depends heavily on the global oil price, which has been rising following the end of the ceasefire.” He warned that a short pause in hostilities would not be enough to bring costs down. Most read in Money He said: “A short-term pause in hostilities between the countries is unlikely to be enough to quell the oil price. What’s needed is a sustained drop over several weeks and, unless that happens, elevated prices at the pump look like they’re here to stay.” Despite the gloomy forecast, oil prices did tumble on Monday after the US paused its strikes on Iran, with Brent crude falling 6.5% towards $90 a barrel amid hopes of a fresh ceasefire. In the meantime, motorists have been urged to shop around for the best deals. Williams said: “We continue to encourage drivers to use free apps like myRAC to find the cheapest fuel wherever they are.” Comment now