Motorists in the UK are facing higher fuel costs as petrol prices reach their highest point since mid-June. According to the RAC, the recent upward trend in pump prices follows a surge in the wholesale cost of oil, which has climbed back above $100 per barrel following the collapse of peace negotiations regarding the conflict involving the US, Israel, and Iran.
The volatility in the energy market is largely attributed to the ongoing disruption of the Strait of Hormuz, a critical maritime route that typically handles approximately 20% of the world's oil and liquefied natural gas. While a temporary framework deal in June briefly provided relief, experts warn that the normalization of shipping routes remains a slow process, with the conflict's economic impact expected to persist.
Current RAC data indicates that petrol is averaging 156.19p per litre, while diesel stands at 173.15p per litre. These figures remain below the record highs observed in the summer of 2022 during the energy crisis triggered by the invasion of Ukraine. Simon Williams, head of policy at the RAC, cautioned that without a resolution to the hostilities, petrol prices could potentially reach new peaks related to the current conflict.
To assist consumers, the government has implemented the "Fuel Finder" scheme, allowing drivers to compare local prices. Additionally, former Prime Minister Sir Keir Starmer previously announced that a scheduled 5p increase in fuel duty, originally set for September, has been deferred until the end of December. Fuel retailers have faced scrutiny regarding their pricing, though the official markets regulator has stated there is no evidence of deliberate price gouging.
Source: BBC News
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