RAC predicts 2ppl rise in price of fuel following escalating violence in Iraq

As issues in Iraq escalate with reports that the oil city of Kirkuk has been seized, this has impacted on oil wholesale costs and the RAC now anticipates a 2ppl rise over the coming weeks.

RAC head of external affairs Pete Williams said: “The worsening situation in Iraq is causing a knee-jerk reaction in the global fuel market with wholesale prices going up one pence over Wednesday and Thursday. This uncertainty is being made worse as the warring factions advance on some of the oil facilities, particularly the oil city of Kirkuk. We anticipate that it is likely to push the pump price of both petrol and diesel by 2ppl in the short-term and this could well go much further.

“After a period of relative stability and a welcome drop in the cost differential for diesel, this once again demonstrates how UK motorists and businesses are at the mercy of world events and the volatile nature of the global fuel market.”