Following Russia’s invasion of Ukraine, fuel prices have stabilized for the first time this month.
On Monday, average fuel prices fell from record highs, with petrol nearing £1.67 a liter and diesel nearing £1.79. Crude oil rose to $139 per barrel in the first week of March before falling the following week.
According to the RAC, pricing stability could indicate that merchants have “finished” passing on higher wholesale costs to customers. However, it is uncertain whether and when the price of gasoline will fall.
In recent weeks, UK fuel prices have risen at the quickest rate on record, with petrol up 13p since the beginning of the month and diesel up over 21p. Fuel prices soared after the war in Ukraine pushed up oil prices, which were already rising as global economies recovered from the coronavirus outbreak. Because crude oil is traded in dollars, changes in pump prices are mostly controlled by crude oil prices and the dollar exchange rate.
Economic and trade restrictions have been imposed on Russia, which is one of the world’s largest oil exporters. During the early stages of the conflict, Brent crude oil – a global benchmark for prices – hit a near 14-year high of $139 a barrel. Prices fell to around $100, but have since risen to $115 on Tuesday.
EU Refrains From Imposing Sanctions On Russian Imports
The most recent spike was prompted by discussions inside the European Union. It was about restricting the purchase of Russian oil, which is highly relied upon by the bloc’s member countries.
Some nations, such as the United States and Canada, have already imposed sanctions on Russian oil imports. But the EU has so far refrained from doing so.
Meanwhile, the British government has pledged to phase out Russian oil imports by the end of the year. According to Mr. Williams, the wholesale price of gasoline for retailers is currently £1.30 per liter for petrol and £1.48 for diesel.
“With prices, this high before retailer margin and 20% VAT are added. It’s clear we are in a tough place when it comes to being able to afford to drive,” he said.