The cost of filling up a vehicle rose sharply in August as ongoing tensions in the Middle East continued to affect global oil supplies. Petrol prices hit their highest level in nearly four years, according to the Office for National Statistics. Diesel prices also surged during the same period, adding pressure to household budgets across the country. UK consumer price inflation rose to 3.1% in August from 2.9% in July. Transport, especially motor fuels, made the largest upward contribution to the increase.
Oil prices climbed above $91 per barrel as the conflict between the US, Israel, and Iran intensified, according to the BBC. Average petrol prices rose by 9.1 pence per litre between July and August to 161.3 pence. Diesel prices rose by 14.2 pence per litre to 181.8 pence. Overall motor fuel prices were 23% higher than a year earlier.
Goran Raven, who owns a petrol station in Essex called RJ Raven, shared his concerns about the situation. He said that business was difficult and that his station faced constant pressure from high fuel costs. Raven explained that his station only has small storage tanks, so he needs to order fuel daily from tankers. He added that the spot price of fuel changes each day, and he must adjust his prices accordingly. Raven pointed out that margins on fuel sales are very small, making it hard to make a profit. He said many people think fuel stations earn large profits, but that is not true in reality.
Chancellor John Healey, who is preparing to present his first Budget, commented on the broader economic situation. He noted that the war in the Middle East is causing inflation not just in the UK but around the world. The UK economy grew by 0.4% in July, with investment in artificial intelligence helping to boost activity. Economic growth was 0.6% between January and March before slowing to 0.4% between April and June. Healey is scheduled to deliver his first Budget as chancellor on October 28.
Liberal Democrat Treasury spokesperson Daisy Cooper criticized the government's handling of the situation, according to a report from the BBC. She described the conflict as “Trump's illegal war” and said it was once again hitting British families hard. Cooper also called the inflation figures a wake-up call for the government.
The latest rise in fuel prices reflects the continuing impact of global instability on everyday life in Britain.