“Unprecedented” petrol and diesel price rise sets new record as Iran war bites

The price of fuel skyrocketed last month due to the conflict in Iran, with the cost of diesel rising by 40 pence – the highest monthly rise ever recorded.

Between the beginning and end of March, the price of petrol rose from 132.83 to 152.83 pence per litre – a 20 pence increase and 25 per cent greater than the previous record set at the end of June 2022 following the Russian invasion of Ukraine. 

Diesel, on the other hand, jumped from 142.38 pence per litre to 182.77. This represents a 40 pence increase that’s almost double the previous record rise seen in March 2022, once again soon after the start of the Russo-Ukrainian war.

Head of policy at the RAC, Simon Williams, called the rise “truly unprecedented – fuel prices have never risen this fast in a single month”. Nevertheless, he was quick to point out that “while this is the biggest pence-per-litre increase ever in a month, it’s not as great in real terms as those seen during the 1973 oil crisis when the price of a barrel quadrupled.”

It’s also worth considering that while increases have been incredibly dramatic, we thankfully are yet to surpass the highest priced fuel has ever been in the UK. In summer 2022, petrol and diesel surpassed 191 pence per litre respectively.

Regardless, the price increases have cost drivers dearly; between 27 February when the Iran war began and Monday 23 March, the RAC Foundation calculated that UK drivers had paid an additional £307 million more for fuel than they otherwise would have done if prices had stayed the same.

The RAC Foundation’s director, Steve Gooding, explained how all of this “puts a financial price on war, not just for UK drivers but also the nation’s businesses”.

Last week, the boss of Asda (the UK’s largest fuel retailer), Allan Leighton, hit back at the Government amid speculation over whether forecourts had been profiteering over the ongoing oil crisis – an accusation the Competition and Markets Authority is currently investigating. 

“The Government strategy is called 'point a finger at somebody else'. That is their strategy,” Leighton said. “They've got zero credibility on all this price gouging and everything else. It is time they stepped up and actually started to do things that were positive, rather than trying to camouflage, by pointing fingers at people.”

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