What’s going on with fuel prices?

Motorists have been keeping a close eye on prices at the pumps since the US-Israel war with Iran started in February, and with an uneasy truce now in tatters, prices could be about to head upwards once again.

The conflict in the Middle East sent oil prices soaring, which in turn pushed up the cost of petrol and diesel. But then a peace deal was signed and fuel prices started to come down.

However, the situation has unravelled, with the US and Iran exchanging fire for the last few days and the Strait of Hormuz - a key shipping route that about a fifth of the world’s oil supply passes through - closed once again.

So what does all this mean for motorists?

Pump prices on the rise

Renewed hostilities in the region have once again led to a spike in oil prices - and that’s having a knock-on effect on forecourts.

According to the RAC, the average price of unleaded had fallen from a high of 159.53p in May to a low on 150.59p on 6 July.

But over the weekend, it crept up past 151p.

Diesel, meanwhile, has risen to 164.85p.

Bad timing as summer getaway set to begin

With the summer holidays just around the corner and families planning getaways and days out, the increase in fuel prices couldn’t have come at a worse time.

"Pump prices have started rising again on the back of last week's increase in the cost of oil, meaning the savings drivers have been benefitting from recently could start to disappear,” said Simon Williams, head of policy at the RAC.

“The fate of pump prices here in the UK once again rests on whether there are further attacks between the US and Iran."

Luke Bosdet, the AA’s spokesman on pump prices, added: “Despite more than a penny coming off the average price of petrol over the past fortnight, drivers across the UK now face new increases heading towards the start of the summer holidays."

According to AA figures, one in five drivers are considering a road trip of more than 100 miles between 17 and 23 July.

How can I save money on the road?

Global oil prices are beyond our control, but there are a few steps you can take if you want to keep driving costs down.

Shop around for the best fuel prices

Getting a good deal at the petrol station shouldn’t be a lottery, so look for the best prices in real-time on platforms like:

• Google Maps
• Confused.com
• DriveScore
• Fuel Finder UK
• Fuel Spy
• MotorMouth
• PetrolPrices.com
• RAC Fuel Watch 

Change your driving style

Small changes to your driving style, such as accelerating more gently and braking gradually, can help you cut your fuel consumption.

That, in turn, can help you delay your next trip to the petrol station and make the fuel in your tank last longer.

Use loyalty schemes, smartly

Supermarkets and major petrol station chains offer loyalty schemes where you can get a discount on your fuel.

So if you use the same petrol station regularly, it could be worth signing up, especially if it already offers competitive prices.

Look after your vehicle

Make sure your car is serviced regularly, your tyres are at the correct pressure and the wheels are properly aligned.

For more money-saving tips, check out our list of 50 ways to cut your fuel costs.