Petrol and diesel prices set to rise after US abandons Iran nuclear deal

Following the announcement that the United States is exiting from the Iran nuclear deal, RAC fuel spokesman Simon Williams said:

"Prices at the pumps are likely to rise by at least 2p a litre in the next fortnight as a result of the United States' decision to pull out of the Iran nuclear agreement. The price of oil has already jumped to $77 a barrel on the back of this news. The last time oil was this expensive was in November 2014 when prices were falling due to OPEC's decision to oversupply the market. Unfortunately, the situation now is very different as supply is being curbed and the pound is far weaker ($1.35 v $1.57) which makes fuel more expensive as, like oil, it's traded in dollars. This is potentially a toxic combination for motorists as it will inevitably lead to price rises on the forecourt.

"Drivers are already suffering as last month saw almost 3p a litre being added to the average price of petrol and diesel making it the worst monthly fuel price rise since December 2016. If another couple of pence a litre goes on as a result of the higher oil price and the fact the pound is at a four-month low could take the average cost of a litre of unleaded to 126.5p - a price last seen in October 2014 - which would make filling up a 55-litre family car cost nearly £70.

"Sadly, the days of petrol and diesel for under a pound a litre in early 2016 are fast becoming a distant memory."

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The RAC Media Centre provides journalists and news outlets with the latest motoring-related news, comment, data and research.

The RAC is an iconic UK brand, and provides complete peace of mind to nearly 14 million UK private and business drivers - whatever their motoring needs. As well as its premium nationwide breakdown assistance service – with an expert branded patrol workforce attending more than two million breakdowns every year – and European breakdown assistance products, it offers a wide range of market-leading products across insurance, legal services, vehicle inspections and service, maintenance and repair. Included in this is the first-of-its-kind nationwide Mobile Mechanics service which brings the garage to homes and workplaces. 

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