Drivers who fear a sudden rise in prices caused by the Iran have been queuing at petrol stations across Britain – while the Chancellor is meeting North Sea oil bosses
Queues are building at petrol stations across the country as fears grow among motorists of the knock-on effects from the war in the Middle East.
Rachel Reeves is meeting North Sea oil bosses to discuss soaring energy prices today after they rocketed by 15% in the space of just 48 hours – while car users have already reported seeing prices at the pump go up by 11p per litre.
The Strait of Hormuz, one of the most important shipping routes for oil exports, is currently being blocked by Iran, who warned they would “set fire” to any vessels trying to pass through. And fears that a 1973-style oil crisis could be brewing have seen queues build at petrol stations in Britain and around the world.
But some industry experts have cautioned that “alarmist” messages about fuel crises create a “self-fulfilling prophecy”, pointing out that oil supply levels in the UK are currently at normal levels.
RAC head of policy Simon Williams said: “While the conflict in the Middle East undoubtedly has the potential to push up pump prices in the UK, it’s not a certainty. The oil price would have to rise significantly and stay that way for some time to have a dramatic effect.
“Forecourt prices were already on the rise due oil trading nearer to $70 a barrel in the last few weeks. Regardless of the current situation, petrol rose by a penny a litre in February and is likely to go up by another penny in the next week or so to an average of 134p a litre.
“If oil were to climb to and stay at the $80 a barrel mark, then drivers could expect to pay an average of 136p for petrol. At $90, we’d be looking at over 140p a litre and $100 would take us nearer to 150p, but it’s all too soon to know.”
