Experts warn UK petrol costs may attain £2 a litre by May | Personal Finance | Finance | EUROtoday

Petrol costs may common £2 a litre within the UK by May if the Iran battle escalatesspecialists warn. Fuel costs proceed to rocket within the UK, with petrol at 148.78p a litre on common, based on the most recent information launched as we speak.

This is the very best degree since May 2024 and has risen by greater than 12% for the reason that begin of the battle a month in the past. Drivers have even reported seeing over £2 a litre at some pumps. Similarly, diesel is now 176.52p a litre on common within the UK – the very best degree since December 2022. The battle within the Middle East exhibits no signal of abating, with Trump issuing new threats to “obliterate” Iran’s energy vegetation and oil wells if a deal isn’t reached “shortly”. Meanwhile, Iran’s overseas ministry has denied there are any negotiations with the US to finish the battle.

Samuel Mather-Holgate, managing director at Mather and Murray Financial, mentioned he expects to see £2 a litre in a matter of weeks, if the Iran battle escalates.

He added: “The war in Iran continues to affect the UK consumer, as petrol prices keep going higher. Average prices will hit £2 a litre by May if there is further escalation in the region, which is a real possibility given the track record of Trump.

“Given that very same consideration, if Donald Trump declares he is gained and pulls out of the area, then the value of oil may retreat as nicely, that means petrol costs could possibly be again to regular by the summer time.”

Colette Mason, author and AI consultant at Clever Clogs AI, said she has seen the price rises at the pumps in person.

She added: “Petrol at £2 a litre is not a forecast anymore. It’s already on some forecourts, and the common is catching up quick. I paid £197p a litre for normal diesel on the final replenish.

“For businesses, this isn’t just a cost-of-filling-the-tank story. It runs straight through logistics, field services, delivery, and any operation where staff or goods move.”

For Anita Wright, chartered monetary planner at Ribble Wealth Management, the value will increase are a “warning sign” of how fragile our programs are.

She mentioned: “This is not a story about the world suddenly running out of oil. There is a crucial difference between there being no oil and there being oil that becomes more expensive to move, insure, refine and deliver because geopolitics has disrupted the chain.

“When that occurs, pump costs soar shortly, not as a result of the earth has run dry, however as a result of the route from producer to motorist has develop into unstable. This is a warning signal of how fragile the pricing system turns into when power meets financial weak spot.”

However, some experts have pointed out that £2 a litre is unlikely to become the national average soon, because, in the end, consumers have the final say.

Tony Redondo, founder at Cosmos Currency Exchange, explained: “While £2 a litre has been noticed at high-cost pumps, it’s unlikely to develop into the nationwide common quickly. Historically, such ranges set off demand destruction the place consumption drops, naturally capping costs.

“The UK’s 5p fuel duty cut, in place until September, remains a vital buffer against that psychological threshold. In the US, sharp price hikes are a political landmine for Donald Trump ahead of November’s midterms.”