OIL prices have surged past $100 per barrel today – but how high could the price of petrol in the UK go?
Fuel costs at UK pumps have already begun edging higher in recent days, but the full impact of rising oil prices has yet to be felt.
As fuel prices typically follow movements in the oil market with a short delay, motorists could see more significant increases if crude remains elevated.
Even relatively small increases at the pump can quickly add to household bills, particularly for drivers who rely on their cars for commuting and everyday travel.
Experts fear the price of petrol is now expected to reach as high as 165p per litre – with £2 per litre “not out of the question” if the war continues for months.
Small habits can add up to serious savings
Matas Buzelis, motoring expert at vehicle history platform carVertical, gave some tips on how to save fuel.
He advised people to drive smoothly, limit the use of air conditioning, check tyre pressures, avoid traffic jams and stop carrying unnecessary weight in order to save fuel.
He added: “When prices rise, it is rarely just one bad week at the forecourt. This is especially true when it is linked to conflicts and global events, as it is difficult to predict when it will end.
“The best defence for your finances is to squeeze more miles from every litre by driving smoothly and keeping the car in good health. Small habits can add up to serious savings over a month.”
£2 per litre is not out of the question
Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said “£2 per litre is not out of the question”.
He added: “These are the times that electric vehicles get a boost. With the cost of electricity set to increase much less than gas, and petrol prices on the up, it could be time to switch. If the conflict in the middle east goes on for many weeks, the supply of oil could be really tricky.
“This will push petrol prices up even further than what we have seen in the last weeks. £2 per litre is not out of the question, in fact it’s pretty likely if the war continues for months.”
These are the times that electric vehicles get a boost
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said in the short-term prices could spike to 165p per litre.
He added: “UK petrol prices are projected to climb toward 165p per litre after this morning’s rise in the price of Brent crude to $120 per barrel due to Middle East tensions.
“In a worst-case scenario, Brent could reach $150 could result in prices at the pump shattering the 191.53 per litre record set in July 2022 during the height of the energy crisis following Russia’s invasion of the Ukraine.
“This latest ‘oil shock’ threatens to add 1% to inflation, potentially forcing the Bank of England into raising UK interest rates in the coming months. Beyond the pump, rising costs will eventually filter into higher grocery prices due to increased transport and fertiliser costs.”
