UK fuel prices look set to rise due to the crisis in the Ukraine

The threat of conflict in the Ukraine has caused fuel traders to start the bulk buying of fuel; this means that supplies are being squeezed so prices are increasing. The RAC said recently that oil prices are “almost certain” to rise as a consequence and the result is bound to be higher UK forecourt prices, maybe even as much as 5p per litre.

Once again the UK motorist is to suffer as more and more warnings of a possible hike in fuel costs are emerging, it seems that any global conflict affects forecourt prices – and not in a good way! Okay, so prices have been at a three year low lately but in no way does that mean that UK forecourt prices have been cheap – just not quite as staggeringly expensive as they were before – if this crisis should escalate into war then the potential for fuel prices to soar will be even greater.

The beginning of 2014 saw the average price of petrol in the UK fall to its lowest for three years, with diesel at its lowest for just under two years, this very welcome fall in forecourt prices was due to the reduction in wholesale costs. Unfortunately these wholesale prices were starting to rise even before the present crisis in the Ukraine, mainly because of the pound weakening against the dollar. RAC fuel spokesman Simon Williams said “It’s a great shame our surprise ‘holiday’ from the ever-increasing cycle of petrol price increases has now come to an end”, he added “Sadly, the political tensions over Ukraine have negatively affected the price motorists pay at the pumps as a result of traders not wanting to be caught out and therefore buying up crude oil stocks and consequently raising crude prices.”

It also seems that supermarkets have been even more competitive than usual due to poor fuel sale figures; this has also helped keep forecourt prices down as motorists shop around for the best price. AA spokesman, Luke Bosdet said “Supermarkets have also launched money-off fuel offers in recent weeks and, unlike last year when these were accompanied with 1p or 2p extra on the pump price, the supermarkets are keeping prices on the level.” So it seems that intensive supermarket price competitions are helping us all right now, Mr Bosdet said “Traditionally, supermarkets take longer to pass on increases in wholesale prices and that may still happen but, for now, prices are better than they might otherwise have been.”

Special Thanks David Holt for providing the image