Petrol and diesel drivers see lower prices 'disappear' as Iran tensions send oil costs soaring

Drivers are being warned of fresh petrol and diesel price hikes in the coming days, which could see millions of travellers slapped with heftier charges ahead of the summer holidays.

New data from RAC Fuel Watch shows that both petrol and diesel prices have risen over the last week following fresh attacks by the United States on Iran.

Drivers are now paying an average of 151.19p per litre for petrol and 164.85p for diesel, with daily price increases of 0.05p per day for both fuel types.

This comes as the cost of oil begins to increase again following attacks between the United States and Iran, and the subsequent jump in the cost of oil.

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The price of Brent crude oil jumped by 3.4 per cent this morning to almost $79 (£59) in response to the renewed closure of the Strait of Hormuz.

While this is still a long way away from its peak of around $120 (£89.67) seen in April, the fluctuating price will continue to impact motorists at the pumps.

RAC head of policy Simon Williams said: "Pump prices have started rising again on the back of last week's increase in the cost of oil, meaning the savings drivers have been benefitting from recently could start to disappear.

"The average price of unleaded had fallen 9p from an Iran war high at the end of May of 159.53p to a low of 150.59p on July 6, but over the weekend has gone back above 151p (151.19p).

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"Diesel has also begun to tick up from its conflict low of 164.52p to 164.85p today (Monday), having come down 27p since hitting 191.54p in mid-April."

Drivers could face further price issues as more than 10 million motorists prepare to travel around the country in the coming days, as schools break up for the summer.

Between Friday and Sunday, over 14 million leisure trips are expected to be taken as money-conscious drivers choose to staycation around the UK, rather than travelling abroad.

Motorists travelling longer distances could be at the mercy of motorway service stations, which routinely charge more than 20p per litre extra compared to standard forecourts.

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RAC Fuel Watch data shows that motorway service stations are charging 172.44p per litre, while diesel costs an average of 187.71p.

The motoring organisation has forecast that UK-wide prices, in addition to motorway service stations and premium fuels, will get more expensive.

Mr Williams added: "Drivers embarking on their summer getaways may well see slightly higher forecourt prices again, with both petrol and diesel likely to go up a couple of pence a litre more in the next week or so.

"The fate of pump prices here in the UK once again rests on whether there are further attacks between the US and Iran."

President Donald Trump announced earlier this afternoon that the Strait of Hormuz was "open" and would remain open "with or without Iran".

He added that the United States would be reimbursed at a rate of 20 per cent on all cargo shipped through the channel, adding that the US should be known as "THE GUARDIAN OF THE HORMUZ STRAIT".

Luke Bosdet, the AA's fuel spokesperson, said: "Despite more than a penny coming off the average price of petrol over the past fortnight, drivers across the UK now face new increases heading towards the start of the summer holidays."

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