Rising oil prices linked to escalating tensions in the Middle East could soon push UK petrol and diesel prices significantly higher, according to new analysis from motoring organisations.
The conflict involving the United States, Israel and Iran has disrupted energy production and transport routes across parts of the region since late February. Missile strikes and drone attacks have slowed or halted some oil movements, triggering a sharp rise in wholesale oil and gas prices.
For motorists, this is often first felt at the fuel pump.
Crude oil is a key ingredient in both petrol and diesel. As the wholesale price of oil increases, fuel retailers eventually pass those costs on to drivers.
Since the conflict began on 28 February, the price of Brent crude, the international benchmark used to price oil, has risen from around $73 per barrel to approximately $91.
Industry analysts estimate that every $10 increase in oil prices adds roughly 7p per litre to the price motorists pay at the pump.
Latest data from the RAC suggests the impact is already beginning to appear:
- Petrol has risen 6.81p, reaching 139.64p per litre
- Diesel has climbed 14.81p, reaching 157.19p per litre
However, fuel prices usually respond with a delay of around two weeks, meaning further increases may still be on the way.
Simon Williams, head of policy at the RAC, believes prices could climb further in the coming weeks.
He suggests that petrol could reach an average of around 140p per litre shortly, while diesel may rise to at least 160p per litre.
If global oil prices move closer to $100 per barrel, forecasts suggest petrol could approach 150p per litre, with diesel potentially rising towards 180p per litre.
Where the UK gets its oil
Although the UK produces oil in the North Sea, much of it is exported and refined overseas. The UK therefore remains reliant on imported oil and gas.
The majority of imports currently come from the United States and Norway, with global market prices determining what the UK ultimately pays.
As a result, geopolitical events affecting international supply can quickly influence domestic fuel costs.
Sourced via: BBC News
