Experts warn UK petrol prices could reach £2 a litre by May | Personal Finance | Finance

Gasoline prices may be If the Iran war escalates, the UK will see an average of £2 per liter by May.experts warn. Fuel prices continue to rise rapidly in the UK; The average price of gasoline is 148.78 pa per liter. Latest data released today.

This is the highest level since May 2024 and is up more than 12% since the war began a month ago. Motorists have even reported seeing prices of over £2 per liter at some pumps. Similarly, in the UK, diesel is currently averaging 176.52 pa per litre, the highest since December 2022. The war in the Middle East shows no signs of abating, with Trump making new threats to “destroy” Iran’s power plants and oil wells if a deal is not reached “soon”. Meanwhile, Iran’s foreign ministry has denied any negotiations with the United States to end the war.

Samuel Mather-Holgate, managing director of Mather and Murray Financial, said he expected to see £2 a liter within weeks if the Iran war escalates.

He added: “The war in Iran continues to impact UK consumers as petrol prices continue to rise. “With further increases in the region average prices will reach £2 per liter by May, which is a real possibility given Trump’s track record.

“Given the same assessment, if Donald Trump declares victory and withdraws from the region, then oil prices could also fall, meaning oil prices could return to normal by the summer.”

Colette Mason, author and artificial intelligence consultant Clever Clogs AI said it has seen price increases at the pumps firsthand.

He added: “Petrol at £2 a liter is no longer a guess. It’s already there in some sites and is catching up at average speed. “I paid 197p a liter for regular diesel on my last fill-up.

“For businesses, this isn’t just a story about how much it costs to fill the tank. It goes right through logistics, field services, delivery and any operation where personnel or goods move.”

For Anita Wright, a chartered financial planner at Ribble Wealth Management, price increases are a “warning sign” of how fragile our systems are.

He said: “This is not a story about the world suddenly running out of oil. There is a crucial difference between the absence of oil and the existence of oil that becomes more expensive to transport, insure, refine and distribute because it disrupts the geopolitical chain.”

“When this happens, prices at the pump soar—not because the earth is drying out, but because the path from producer to driver has become unstable. This is a warning sign of how fragile the pricing system becomes when energy meets monetary weakness.”

But some experts say £2 a liter is unlikely to reach the national average any time soon because ultimately consumers have the final say.

Tony Redondo, founder of Cosmos Currency Exchange, explained: “While £2 per liter has been established at high-cost pumps, this is unlikely to reach the national average any time soon. “Historically such levels have triggered demand destruction where consumption has fallen, naturally restraining prices.

“The UK’s 5p fuel tax cut, in force until September, remains a vital buffer against this psychological threshold. Sharp price rises in the US are a political landmine. Donald Trump “Before the November midterms.”