LONDON (Parliament Politics Magazine) – As Russia’s attack on Ukraine continues to impact world oil prices, diesel costs in the UK have risen by an average of over 2p in a day.
On Tuesday, the price of fuel hit a new high of £1.76 per litre, up from about £1.74 on Monday.
The price of petrol, which has also reached new highs, has risen to over £1.65p per litre, up from around £1.64.
According to BBC NEWS, the continued price increases come despite concerns of impending global oil supply issues.
Soaring prices of commodities and sanctions on Russia for its war on Ukraine, according to the International Energy Agency (IEA), are likely to cause a worldwide oil supply shock.
As a result of global sanctions, it is anticipated that 3 million barrels of Russian oil per day might be removed from the world market.
Only the United Arab Emirates and Saudi Arabia, according to the agency, have just enough reserve production capacity to compensate for the deficit in Russian production, which is the world’s biggest oil exporter.
According to the IEA, Russia maintains to supply oil for a short while due to treaties and agreements established before Moscow launched forces into Ukraine. However, new business has almost started to dry up as many Western nations seek alternate fuel sources.
Some nations, such as Canada and the United States, have outright prohibited Russian oil supplies, but the EU, which is far more dependent on Russian resources, has refrained.
Meanwhile, in reaction to Russia’s actions, the United Kingdom has announced that it will phase down Russian oil supplies by the end of this year.
Prime Minister Boris Johnson visited the United Arab Emirates and Saudi Arabia to address energy supplies and other topics.
According to the IEA, the world is facing what might be the worst supply issue in years.
It went on to say that the consequences of a possible loss of Russian oil supplies to international markets just can not be understated.
Brent crude oil, the worldwide benchmark for pricing, was hovering around $100 a barrel on Wednesday, after reaching new highs of over $130 per barrel in the midst of Western nations imposing sanctions on Russia.
Oil’s quick climb has pushed up costs at the pump in the United Kingdom. Although the United Kingdom only imports roughly 6% of its oil from Russia, it is influenced by global price fluctuations caused by demand and supply pressures.
Fuel prices have risen at the fastest pace on record, according to RAC fuel spokesperson Simon Williams, with petrol up 13p and diesel up over 21p since the beginning of the month.
According to him, a full tank of unleaded for a family vehicle currently costs about £91 on average.
In his forthcoming Spring Statement, the chancellor should decrease fuel duty or VAT, says the RAC.
