Queues are forming at gas stations nationwide as motorists express concerns about the potential repercussions of the conflict in the Middle East. Rachel Reeves is scheduled to meet with North Sea oil executives today to address the sharp rise in energy prices, which surged by 15% within a two-day span. Simultaneously, drivers have witnessed a notable increase of 11 pence per liter at fuel pumps.
The Strait of Hormuz, a crucial oil export route, is currently obstructed by Iran, who has issued threats to disrupt any passing vessels. The situation has sparked fears of a possible oil crisis akin to the events of 1973, leading to long lines at gas stations in the UK and globally.
Despite the escalating tensions, industry experts caution against sensationalized messages regarding fuel shortages, highlighting that the oil supply in the UK remains stable. RAC’s head of policy, Simon Williams, emphasized that while Middle East conflicts could influence pump prices, a significant and sustained spike in oil prices is necessary for a considerable impact.
Williams stated, “Even with the Middle East turmoil, a substantial oil price hike is not guaranteed. Current oil trading trends near $70 per barrel have already contributed to rising fuel costs. In February, petrol prices increased by a penny per liter and are projected to rise by another penny, reaching an average of 134 pence per liter soon.”
He further explained, “If oil prices reach and stabilize at $80 per barrel, drivers may face an average petrol cost of 136 pence. Prices could soar past 140 pence at $90 per barrel and approach 150 pence at $100 per barrel. However, the future remains uncertain.”
While reports of fuel shortages have emerged at select petrol stations, officials reassure that the United Kingdom faces no widespread oil supply issues, with disruptions occurring only at localized levels. Costco’s competitive pricing often attracts significant traffic to its petrol stations, while images show cars lining up at various locations, including a Go petrol station in Liverpool and a driver in Los Angeles collecting fuel in a jerry can.