UK fuel costs soar to levels not seen since 1980s conflict

Unleaded gasoline in the United Kingdom has surged to 163 pence per litre, the most expensive price point recorded since the Iran‑Iraq war of the 1980s, according to motoring group the RAC. The jump reflects a broader trend of rising crude oil costs that have persisted throughout the year, BBC News reported.

The RAC’s latest price monitor shows the average retail price for regular unleaded fuel ticking up by several pence each week, outpacing the modest increases seen in previous months. While the exact figure varies by region and retailer, the national average now sits at a level that many drivers have not experienced for over four decades.

Why the spike matters – The United Kingdom imposes a combination of fuel duties and VAT that already makes petrol more expensive than in many neighboring countries. When global oil prices climb, the tax component magnifies the impact on the pump price. Analysts note that the current surge coincides with geopolitical tensions in the Middle East, which have kept crude supplies tight and forward‑dated contracts at premium levels. In addition, the UK’s reliance on imported oil means that fluctuations in the Brent benchmark are quickly felt by motorists.

The rise in fuel costs is expected to strain household budgets, especially for commuters and businesses that depend heavily on road transport. The Department for Business and Trade has warned that higher operating expenses could feed through to the price of goods and services, potentially nudging inflation higher. Consumer groups are calling for a review of the fuel duty rate, arguing that the current level is unsustainable in an environment of persistently high oil prices.

Historically, UK petrol prices have peaked during periods of oil market shock, such as the 2008 financial crisis and the 2011 Arab Spring uprisings. The current level, however, is notable because it aligns with the longest stretch of elevated oil prices since the early 2020s, driven by a mix of supply constraints, robust demand recovery after pandemic lockdowns, and ongoing geopolitical risk. If the trend continues, drivers could see further incremental rises before any policy response is enacted, BBC News noted.