UK drivers are paying sharply more at the pump this week, with prices closing in on levels last seen during the height of the Iran conflict earlier this year. Here’s what’s driving the jump and where prices might go next.
Quick Answer
UK petrol rose to 156.13 pence per litre and diesel to 173.97 pence per litre in the week of July 27, 2026, according to official GOV.UK fuel price data, up 3.84p and 6.89p respectively from the prior week. The increase is being driven by rising crude oil costs tied to renewed tension around the Strait of Hormuz, a key Middle East shipping route for global oil and gas.
Key Takeaways
- Petrol hit 156.13p per litre and diesel 173.97p per litre in the week of July 27, 2026, per official government data.
- Diesel rose faster than petrol this week, widening the diesel premium to 17.84p per litre.
- The increase follows renewed disruption concerns around the Strait of Hormuz, which carries roughly a fifth of the world’s oil and gas supply.
- RAC data shows petrol is now within about 2p of its Iran-conflict record high of 159.93p, reached in late May.
- Brent crude has pulled back to around $91 a barrel after briefly topping $100 last week, though pump prices tend to lag crude moves by days or weeks.
How Much Prices Have Risen
| Fuel | Week of July 13, 2026 | Week of July 27, 2026 | Change |
|---|---|---|---|
| Petrol | 150.53p/litre | 156.13p/litre | +5.60p |
| Diesel | 164.52p/litre | 173.97p/litre | +9.45p |
According to RAC Fuel Watch, since the start of July petrol has climbed more than 6.5p a litre and diesel more than 9p, adding roughly £3.50 and £5 respectively to the cost of filling an average family car.
Why Fuel Prices Are Rising
The increase traces back to renewed tension in the Middle East affecting the Strait of Hormuz, a narrow shipping route that carries about 20% of the world’s oil and gas supply. Disruption risk in that corridor pushes wholesale oil and gas costs higher across Europe, and those costs flow through to UK pump prices within days to weeks, whether or not physical fuel supply is actually interrupted.
Brent crude, the global benchmark, briefly rose above $100 a barrel last week before easing back to around $91. Pump prices typically don’t move in perfect sync with crude prices — they tend to lag behind and can keep rising even after crude has started to fall, since retailers are still working through higher-cost fuel purchased earlier.
How This Compares to Earlier in 2026
Fuel prices have been volatile all year. Petrol bottomed out around 131.46p per litre in early February before climbing sharply from March onward, peaking near 158.78p in late May — a period that coincided with the most intense phase of the Iran conflict. Diesel followed a similar path, spiking above 192p in mid-April before easing back over the summer. This week’s increase brings both fuels back toward, though not quite past, those earlier highs.
Why Diesel Costs More Than Petrol
The gap between diesel and petrol prices, known as the diesel premium, widened to 17.84p per litre this week. Diesel tends to be more exposed to global supply disruptions because a larger share of it is imported and used in freight, shipping, and industrial applications, all of which compete for the same limited supply during a crunch.
What This Means for Households and Businesses
Higher fuel costs affect far more than trips to the pump. Freight operators, delivery services, construction firms, and manufacturers that rely on diesel-powered equipment all face higher input costs, which can eventually show up in the prices of everyday goods. Rising fuel costs are also one factor policymakers watch closely when assessing near-term inflation pressure.
For individual drivers, comparing prices across stations and supermarket forecourts, which are typically cheaper than motorway services, remains one of the most direct ways to reduce the impact.
What to Watch Next
Fuel duty in the UK is currently frozen at 52.95p per litre through the end of 2026, with a 3p per litre increase scheduled for January 2027 and a further 2p in March 2027. Beyond tax changes, the more immediate driver of prices will be how the Strait of Hormuz situation develops and whether Brent crude continues easing from its recent highs or reverses back upward.
FAQ
Why are UK petrol and diesel prices rising in July 2026?
Prices are rising mainly because of renewed tension around the Strait of Hormuz, a key Middle East oil and gas shipping route, which has pushed wholesale fuel costs higher across Europe.
Is diesel more expensive than petrol right now?
Yes. As of the week of July 27, 2026, diesel cost 173.97p per litre versus 156.13p for petrol, a gap of 17.84p known as the diesel premium.
Will fuel prices keep rising?
That depends largely on how the situation around the Strait of Hormuz develops and where Brent crude oil prices head next. Analysts have not ruled out further increases in the near term.
Is UK fuel duty going up?
Fuel duty is frozen at 52.95p per litre until the end of 2026, after which it’s scheduled to rise by 3p per litre in January 2027 and a further 2p in March 2027.
Sources
- GOV.UK — Weekly Road Fuel Prices
- GB News — UK Drivers Face Fuel Cost Hikes
- Brumble — Are Petrol Prices Going Up? Updated July 2026
This article is for general information and is not personalized financial advice.
Finance Writer | Wall Street Sights
Gulraj Ansari covers U.S. markets, business, investing, artificial intelligence, and global economic trends. His reporting focuses on delivering clear, research-backed, and reader-friendly financial insights.
