What's happening to petrol prices now oil is back to pre-Iran war levels?

Image source, Maskot/Getty ImagesByFaarea Masud, Alex Daniel and Michael Race, Business reportersPublished2 March 2026Updated 10 minutes agoMotorists in the UK are already seeing cheaper fuel prices after the US and Iran struck an agreement to end their war, with further falls expected in the coming weeks.When the conflict began on 28 February, fuel costs jumped as the war significantly disrupted the production and transportation of energy across the Middle East.However, in recent weeks they have dropped and the framework deal reached between the US and Iran has sent them to their lowest point since the first days of the war in early March.Motoring group the AA has said it expects pump prices to fall further and "the timing is perfect for the start of the summer holidays". Meanwhile rival group the RAC has said price reductions "should be faster and greater, particularly for diesel".How do wholesale oil prices affect the cost of petrol and diesel at the pump?Crude oil is a key ingredient in petrol and diesel, which means that higher wholesale costs make filling up a car more expensive.Analysts say every $10 (£7.53) increase in the oil price pushes up pump prices by roughly 7p a litre.Since the war began, the price of a barrel of Brent crude – the global benchmark for wholesale oil prices – has been very volatile.Before the conflict, Brent was about $70 a barrel, but the conflict saw it peak at above $120. The price has been slipping in recent weeks and after the framework deal was signed it fell to around $76 a barrel. It has continued to drop and at one point fell below $72.48 (£55) a barrel, the price it was at the day before the US and Israel launched attacks on Iran on 28 February.What has happened to petrol prices in the UK?According to the RAC, the price of petrol reached an Iran war peak of 159.53p a litre on 28 May, while diesel's highest price during the conflict was 191.54p a litre on 15 April.Since 28 May, the price of petrol has come down. The RAC said that on Friday, 26 June show the average price of petrol had fallen 2p in a week to 151.98p and diesel by 4p to 168.64p.The RAC says it now costs £83.59 to fill up a 55-litre family car with petrol and £92.75 for diesel, However, this is still £10.50 and £14.40 respectively more than it did at the end of February before the conflict began.The RAC's head of policy, Simon Williams, said: "Fuel prices are falling steadily in reaction to the drop in the price of oil and wholesale petrol and diesel costs which is good news for drivers who've had a torrid time at the pumps this year. "But our analysis of wholesale data shows the reduction should be faster and greater, particularly for diesel. Drivers really ought to see average prices of below 150p for unleaded and below 160p for diesel in the next week or so."Despite the conflict, petrol and diesel prices remained below the levels reached in the summer of 2022 following Russia's invasion of Ukraine, when petrol reached 191.5p a litre and diesel hit 199p. Because transporting oil is a slow process, price movements in the wholesale markets take about a fortnight to show at the pump.Fuel retailers have denied accusations of price gouging during the conflict. The official markets regulator said it had "not seen evidence of retailers actively changing their pricing strategies to take advantage of the crisis".A government scheme called Fuel Finder, external lets drivers compare the cost of fuel offered by petrol stations across the UK. Luke Bosdet, the head of policy at the AA, said the group had been surprised at the speed that prices had fallen and put it down to the scheme.On 20 May Prime Minister Sir Keir Starmer said a planned 5p increase in fuel duty due in September would be postponed until 31 December because of the conflict. No evidence of widespread fuel price-gouging, watchdog saysPublished1 MayDrivers can compare fuel prices at different petrol stations - how does it work?Published2 FebruaryWhy has the Iran war had a big impact on oil prices?The Middle East conflict sent global oil prices soaring as it effectively closed the Strait of Hormuz - one of the world's key water transport routes for oil, liquid natural gas and other essential commodities - limiting global supplies.About 20% of the world's oil and liquefied natural gas normally passes through the waterway.Despite the deal between the US and Iran, experts warn a return to normal levels of shipping through the Strait of Hormuz will take time, and the impact of the war will continue to affect the global economy for potentially months to come. Why and how is US blockading Iranian ports in Strait of Hormuz?Published30 AprilOil price predicted to remain above $100 for rest of yearPublished11 MayWhere does the UK get its oil and gas?The UK is heavily reliant on oil and gas imports, with the majority coming from the US and Norway.The price of oil on the global market determines how much the UK pays for it.Although the UK does get some oil from the North Sea, most of that is exported for refining elsewhere.You can also send us your questions by following this linkGet in touchHow have you been affected by the price rises? Share your experiencesContact formRelated topicsOil & Gas industryOilFuelMotoringIran warAir travelPersonal finance