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Mon, 02 Mar 2026

Mon, 02 Mar 2026 Will petrol and diesel prices go up now?

If oil prices remain high for some time, the knock-on effects could affect the costs of fuel and food
The recent conflict in the Middle East has led to a jump in oil prices, which could result in higher fuel costs for motorists. Iran's warning to vessels not to pass through the Strait of Hormuz, a crucial waterway for oil and gas shipments, has contributed to the price increase. If the restrictions persist, it may lead to higher prices at the pumps, with the average price of petrol currently at 133.2p per litre and diesel at 142.7p. However, there is still uncertainty about whether the conflict will have a lasting impact on oil prices. The AA motoring group suggests that fuel costs could return to their starting point for the year if the conflict continues. Further rises in fuel prices depend on the magnitude and duration of the conflict. Experts warn that higher fuel costs could have knock-on effects on prices of goods, including food, due to increased transport costs. This may lead to a rise in living costs and potentially even more direct impacts on food prices. In the short term, domestic gas and electricity bills are shielded from wholesale cost increases, but variable energy tariffs may be affected in July. UK inflation has eased recently, but rising oil prices could reverse this trend, affecting interest rates and the economy. The Bank of England's next meeting will assess the impact of higher oil prices on inflation, with economists warning that prolonged elevated crude prices could lead to a cascade of price increases in other areas.