Middle East tensions are likely to push oil price higherPrice of petrol already up 8p-a-litre this year - diesel rising on retailer marginsBoth the RAC and AA said drivers can expect another difficult year at the pumps 

Average petrol prices have risen by nearly 8p per litre so far this year, figures show - and it means a litre of unleaded looks set to rise above £1.50 on average for the first time in five months.

A 1.6p jump in the past week - the steepest weekly leap since August - has brought the average price of a litre of petrol at UK forecourts to a five-month high of 148.5p, according to government data.

That is compared with 140.8p at the start of the year and means the cost to fill up an average family car now costs £4.24 more than it did on 1 January.

The RAC warns that increased tensions in the Middle East could push the cost of oil higher, which is likely to see petrol move well above 150p a litre as a result

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Average pump prices for diesel have increased to 157.5p, which is the most highest level since November 2023.

On Monday, prices moved higher again, with RAC Fuel Watch - using official data - confirming petrol had risen to 149.5p and diesel at 158p per litre.

RAC fuel price spokesperson Simon Williams says this year is 'proving to be another tough one' for drivers at the pumps.

'Both petrol and diesel are now the most expensive they've been since November last year, which is bad for households, businesses and the economy, especially as we know there is a close link between fuel prices and inflation.

'With increased tensions in the Middle East, the cost of oil is only likely to go up which could push petrol well above 150p a litre.'

The cost of a barrel of Brent Crude oil currently sits at just below $91 compared to $75 at the start of the year, its highest point since last October.

If the UK average price of unleaded does accelerate above 150p, it will be the first time a litre costs more than £1.50 since the middle of November 2023.

'While diesel is getting close to 160p, this is purely down to retailers taking much bigger margins as there's only been a few pence between the wholesale prices of both fuels since mid-March,' Williams said.

'We find it hard to believe that a margin of 13p a litre on diesel – compared to the long-term average of 8p – is fair.

'This surely won't go unnoticed by the Competition and Markets Authority which only two weeks ago expressed its concern about higher retailer margins.'

With petrol edging closer to 150p per litre, the AA says drivers could be in for a difficult period at the pumps by the summer

Gordon Balmer, executive director of the Petrol Retailers Association (PRA), which represents the nation's independent filling stations, forecourts at motorway services and supermarkets, collectively accounting for 65 per cent of all UK fuel stations, said retailers are' doing all they can to keep prices as low as possible for their customers'. 

Refuting the RAC claims, he added: 'It is disappointing that while we are working with the relevant government departments to lower the costs for motorists, we must constantly correct the narrative offered by some commentators in the media.

'Petrol retailers operate on razor thin margins in a highly competitive market.

'They have had to contend with a substantial increase in their operating costs in the form of energy, business rates, National Minimum Wage, and record levels of retail crime.

'As most will understand, when costs increase, and sales reduce, margins must also increase to ensure that the business viable.

'If petrol stations started going out of business, the country’s energy security would be compromised, motorists would have to drive further to fill up on fuel and a substantial number of jobs would be lost.'

Luke Bosdet, AA fuel spokesman, says pump prices are now climbing towards the 150p-a-litre average that drivers across the country fear.

'It is a psychological shock that shouts out from the price boards each time motorists drive past,' he said.

'The worst part is that petrol prices will be spurred on by the inflationary pressures of higher demand as the US motoring season looms.

'The early part of the summer could be a tough time for UK motorists.'