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Iran Conflict Pushes UK Fuel Costs to Record Monthly Jump as Summer Bill Hikes Loom

Higher oil and gas costs tied to the war are reviving inflation pressures.

Overview

  • RAC data published Thursday showed the steepest monthly rises on record in March, with petrol averaging about 153p a litre and diesel near 184p, lifting a typical 55‑litre fill to roughly £84 for petrol and £100 for diesel.
  • Energy consultancies now expect Ofgem’s July–September price cap to climb, with Cornwall Insight pointing to about £1,929 and the Resolution Foundation warning bills could reach £2,100, ahead of Ofgem’s 27 May decision.
  • Bank of England figures show businesses now expect inflation at 3.5% in a year, up from 3%, as Brent crude holds above $100 and firms signal higher prices and small workforce cuts.
  • New Bank of America card‑spend data show gas station sales up 21% year over year while spending fell at furniture, department, and home‑improvement stores, suggesting higher fuel costs are crowding out other purchases.
  • The World Bank, IMF, and IEA warned of substantial and uneven global damage from the crisis, driven in part by disruptions near the Strait of Hormuz, a route that carries about a fifth of seaborne oil and adds a risk premium to pump prices.