Fuel costs reach new highs as Russia’s invasion of Ukraine continues to affect global oil prices.
Image source, PA Media
Fuel prices have hit record highs in the UK as Russia’s invasion of Ukraine continues to affect global oil prices.
The RAC said the average price of petrol jumped to £1.51 a litre on Sunday, while diesel increased to £1.55.
The price of both fuels has jumped since Thursday, when Russia began its assault on Ukraine.
RAC fuel spokesman Simon Williams said despite oil prices calming, prices at the pump will continue to rise.
The cost of filling 55-litre family car with unleaded petrol is now £83 or £85 for diesel.
Mr Williams said: “This will week will be an important one in terms of the oil price as it’s likely to reveal the speed of the inevitable upward trend or the extent of the volatility in the market.”
The price of Brent crude rose by 4.6% to $102 barrel on Monday after Western nations hit Russia – one the world’s largest energy producers – with new sanctions over its invasion of Ukraine.
Petrol price movements in the UK are mainly determined by the price of crude oil, and the exchange rate between the dollar and the pound, because crude oil is traded in dollars.
Although the UK imports just 6% of its crude oil from Russia, it would still be affected by global wholesale prices rising.
‘A silver lining’
UK consumers are already paying a high price for fuel, with demand surging following the easing of Covid restrictions.
Robert Halfon, a former Conservative minister, has called on Chancellor Rishi Sunak to look at reducing VAT or fuel duty, which has been frozen for 12 years.
He told the Times: “Given what is going on it is genuinely going to be unaffordable for most families. It isn’t just for motorists, it’s businesses too because they can’t afford transportation costs and things like that.”
Luke Bosdet, fuel spokesman for the AA, said the hike in fuel costs came at the same time as households were facing energy bill rises.
“To think that, less than two years ago, fuel at £1 a litre beckoned,” he said.
“If there is a silver lining, the predictions of 160p or even 170p-a-litre fuel now look exaggerated as the oil price fell back after one day’s surge last week.”
