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.”