RACHEL Reeves is facing growing calls to ditch her 5p fuel duty rise as diesel prices have jumped by 23 per cent since the Iran war started.
The Chancellor came under pressure to axe the increase as the average price of per litre of the diesel at UK forecourts reached 176.7p yesterday.
Petrol prices were up 13 per cent in the same period to 149.4p a litre.
Oil prices have soared to as much as £89 a barrel in response to Iran’s stranglehold on tankers passing through the Strait of Hormuz, setting pump prices rising.
Drivers have paid out an extra £330million for petrol and diesel since the Iran war started, the RAC said. The Tories and Reform UK called for the rise to be halted.
Fuel duty has remained frozen since 2011 thanks to The Sun’s Keep It Down campaign.
A temporary 5p cut came following Russia’s invasion of Ukraine — but will be phased out from September.
Ms Reeves said she would give an update on pricing in the coming weeks.
Experts have warned of a rise in prices of other goods also affected by the disruption to shipping routes.
And economists say inflation could hit four per cent in the third quarter of this year due to energy prices surging.
Meanwhile, Sir Keir Starmer admitted Energy Secretary Ed Miliband held the decision on whether Britain drilled for more oil and gas.
The PM said he was powerless to grant more licences at two fossil fuel sites in the North Sea. He said that any decision rested with his Cabinet colleague in his quasi- judicial role as the regulator.
Tory leader Kemi Badenoch accused the PM of hiding behind Mr Miliband.
She added yesterday: “He is so weak, he’s the first person to be pushed around by the Energy Secretary.”
