Gotrade News - Average petrol prices in the UK have reached 150p per liter for the first time since 2024. This occurs even as Donald Trump has pledged to postpone his attack on Iran's energy sites for the next ten days.
Key Takeaways:
- UK petrol and diesel prices have risen significantly.
- The Middle East crisis is affecting global oil supply and prices.
- The UK government is reluctant to reduce fuel duties.
Petrol and diesel prices continue to climb amid the Middle East crisis that is restricting supply. Diesel prices are now nearing 180p per liter, and the crisis in the Strait of Hormuz is limiting the flow of crude oil.
Petrol at motorway service stations has averaged 166p. Drivers need to carefully plan their journeys, especially with the upcoming Easter holidays.
The UK government has warned companies against profiteering from the crisis. However, allegations of price gouging by fuel retailers have been denied.
Brent crude prices hitting $110.68 a barrel indicate that the market remains skeptical of Trump’s promises. As long as supplies remain restricted, prices at the pumps are expected to stay high.
The cost of UK government borrowing has also risen, with 10-year bond yields at 5.08%. This suggests the market anticipates higher inflation ahead.
Kathleen Brooks from XTB has recommended a reduction in fuel taxes to lower inflation expectations. However, this step has yet to be taken, with the government instead blaming retailer practices.
Reference:
- Bloomberg, Iran War Threatens to Reverse Central Banks' Role in Gold Market. Accessed on March 27, 2026
- Bloomberg, Stocks and Bonds Fall as Iran War Keeps Escalating: Markets Wrap. Accessed on March 27, 2026
- Bloomberg, Morgan Stanley Sees South Africa Rate Hike in May Amid Iran War. Accessed on March 27, 2026
Featured Image: GPT Image 1.5
