Iran War Sends Family Car Fuel Fill-Up Cost Soaring to £100

The price of filling a tank reached £100 today as forecourt costs climbed again amid the continuing war in Iran.

Average petrol prices have risen to a fresh post-war high, while diesel has also surged, pushing the cost of filling a typical family car to £89 and £100 respectively.

Before the conflict began, the same fill-up would have cost around £73 for petrol and £78 for diesel.

The jump will be felt by millions of motorists setting off on summer holidays and is likely to intensify pressure on Labour to abandon a planned Fuel Duty increase due on New Year’s Day.

A 5p-per-litre cut to the levy, introduced by the Conservatives in 2022, is scheduled to end on January 1, with ministers currently preparing to reverse the reduction from the start of the new year.

Western oil supplies have been under strain since the conflict erupted on February 28, largely because of the effective closure of the Strait of Hormuz. The squeeze has driven crude prices higher, feeding through to sharp increases at the pumps.

Prices briefly eased after a US-Iran ceasefire was announced in June.

However, that fragile peace agreement collapsed last month, and fuel prices have resumed their climb as pressure on oil supplies builds once more.

Simon Williams, the RAC’s fuel guru, said: ‘This means the cost of a full tank of diesel for a 55-litre family car is once again at £100, something drivers haven’t had to endure since early June, while the petrol equivalent is £89, the highest it’s been since the war in the Middle East began on February 28.’

However, he said ‘there is hope on the horizon’ as wholesale prices have fallen in recent days and this could be reflected at the pump within a week or two.

But this is dependent on the course the conflict takes and prices could yet surge again.

Average petrol pump prices hit 161.47p a litre today – the highest since the start of the Iran war – while diesel hit 181.45p.

Before the war, they were 132.83p a litre and 142.38p.

The Tories’ shadow transport secretary, Richard Holden, added: ‘Labour’s Christmas holidays fuel tax hike will hurt businesses and hammer hardworking families already stretched to breaking point.

‘For months, Conservatives have been calling for Labour to axe their fuel tax hike.

‘Andy Burnham must not target drivers to fund his eye-watering spending plans; plans that can only be paid for through tax rises.

‘It’s time for Andy Burnham to rule out a Fuel Duty tax hike.’

On Tuesday, the Mail revealed how John Healey has privately been warned to abandon Labour’s planned Fuel Duty raid if Downing Street wants to be seen as serious about helping hard-pressed families with the cost of living.

In a private letter to the new Chancellor, industry chiefs warned pump prices were on the rise again and could remain high for months as the Iran war drags on.

Gordon Balmer, boss of the Petrol Retailers Association (PRA), which represents more than 5,000 forecourts, wrote: ‘Unfortunately, January and February are precisely the months when household budgets are typically at their most strained…That is why I am today asking you to abandon your plans to end the Fuel Duty cut at the start of 2027.

‘By doing this, you can help motorists, businesses, and ordinary working families by providing them with confidence that you are doing what is within your power to support them.’

Analysis by the RAC Foundation shows that since July 17, when the great summer getaway started as schools broke up, sky-high pump prices have cost motoring families £500million when compared to prices before the war started.

It means the Treasury has raked in an extra £80million in VAT this summer alone and £920million since the conflict started because of higher prices at the pumps.

Treasury sources said a decision on Fuel Duty would not be made until Mr Healey’s first Budget, on October 28.