The average price of unleaded petrol has now risen past 150p a litre for the first time in nearly two years, having jumped over 17p since the conflict began, according to the latest RAC data
Britons rushed to buy fuel at the pumps in the immediate aftermath of the Iran war, while spending on holidays also plummeted due to the uncertainty triggered by the conflict, new data has revealed.
Figures from banking giant Barclays showed spending on fuel surged 10.9% in the week after the US- Israel war on Iran first broke out on February 28.Motorists scrambled to fill up their tanks amid fears over supply and prices as the cost of crude oil soared above 100 US dollars a barrel.
The average price of unleaded petrol has now climbed past 150p a litre for the first time in nearly two years, having leapt over 17p since the conflict started, according to the latest RAC data.
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Barclays said spending on fuel swiftly returned to normal levels after the initial surge. But there are growing signs of motorists looking to fill up whenever they can.
Asda boss Allan Leighton said on Friday the chain had experienced “temporary shortages” at some pumps, though he emphasised the issues were not nationwide.
Fuel Industry UK, which represents the fuel sector, also said the supply of petrol and diesel was “stable”.
The Barclays data showed spending on holidays and travel fell 7.9% in the week beginning March 14 as it said consumers were also adopting a “wait and see” approach to booking trips.
Over half of the drop (54%) was down to consumers pausing holiday bookings, while the remainder came from refunds for cancelled travel plans due to disruption from the war. However, the bank’s data revealed that discretionary spending, such as dining out and entertainment, is maintaining well so far.
Vim Maru, chief executive of Barclays UK, stated: “The conflict in the Middle East and concerns about rising costs are understandably leading people to be more cautious, even as many continue with their day-to-day spending.
“If you’re feeling uncertain about your finances, whether that’s spending, your mortgage, savings, debts or investments, being proactive with your finances can help. Seeking advice and making use of money management tools will provide reassurance and support.”
