RAC warns of fuel price hike following Russian military move into Ukraine
The political unrest created by Russia’s decision to send troops into the Crimea region of Ukraine will lead to petrol and diesel prices rising in the coming weeks, the RAC warned today.
Fuel traders have already begun to buy up stocks to guard against being caught out in the event of the situation worsening, which automatically causes prices to increase due to a tightening in supply. And, to make matters worse, the price of oil will almost certainly be negatively affected, further increasing fuel costs and, in turn, forecourt prices.
British motorists have 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.
However, even before the appearance of Russian troops in Ukraine, wholesale prices had begun to rise again as a result of the pound losing ground against the dollar (despite it being around 12% stronger than it was a year ago) and oil stocks declining, thereby causing prices to rise.
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. 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.”
Motorists wanting to keep a closer eye on which way fuel prices are headed can do so by visiting the RAC’s Fuel Prices Explained pages at http://www.rac.co.uk/advice/fuel-price.
The price of fuel is one of the hottest topics with drivers nearly half (46%) of 1,500 motorists surveyed for the RAC Report on Motoring 2013 saying the cost of driving is still their number one motoring concern. The report also revealed that 78% of drivers see their car as an integral part of their lives, saying they would find it difficult to adjust life without a vehicle. More than half (54%) said they would have a fuller social life, visiting family and friends more often, if fuel was more affordable.
A supporter of the FairFuelUK campaign, the RAC strives to be the motorist’s champion by calling on the Government to drive down costs at the pumps by capping, or reducing fuel duty from nearly 58p per litre.
