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Ukraine Crisis Could See Fuel Prices Soar

Tue, 04 Mar 2014 00:00:00 -0800

THE RAC has said that the current crisis in Ukraine will see a rise in petrol and diesel prices in the coming weeks.

It said fuel traders had already begun to buy up stocks to guard against being caught out in the event of the situation worsening.

Furthermore, this will cause prices to increase due to a tightening in supply. And, to make matters worse, the price of oil will almost certainly be affected, further increasing fuel costs and, in turn, forecourt prices, the RAC said.

The motoring organisation said that, in contrast, British motorists had enjoyed more than a month of the lowest average pump prices for three years, with petrol below 130p a litre.

The low forecourt prices were a result of fuel retailers passing on savings in the wholesale price, which had eased in mid-January to around 100p a litre for petrol and 129p for diesel.

Commenting on the prospect of increased prices, RAC head of external affairs Pete Williams said: "While savings were only small, at 129p a litre the price was 11p cheaper than it was in early March last year which meant a saving of around £6 on a tank of petrol for an average family car like a Ford Focus and £5 for a tank of diesel.

"The tensions in Ukraine, brought about by Russia's unprecedented move, will unfortunately affect everyone driving a vehicle in the UK as the fuel market is intrinsically linked to major international political events."

He went on: "While we can all only hope for a speedy resolution to this situation, from a motorists' perspective we really need the pound to continue performing well against the dollar as this could help to offset some of the inevitable price rises."

By Press Association reporters