Drivers at a Tesco store in Worcester were informed that there was no petrol available due to disruptions in the oil market caused by the conflict in Iran. The petrol station at the Tesco Superstore displayed a sign indicating the unavailability of fuel, with pictures showing deserted pumps and cones blocking access for customers.
The disruption in petrol supplies is a result of Iran’s control over oil tankers passing through the Strait of Hormuz, a critical international shipping route, leading to a surge in pump prices. The prices of Brent crude, a global oil benchmark, have risen significantly from $73 to over $100 per barrel. This increase translates to a 7p hike at the pumps for every $10 rise in crude prices, with petrol prices in the UK escalating by 16.6p to 149.44p per liter since the conflict began.
Diesel prices have surged even more, climbing by around 33.4p to 175.73p per liter, and experts foresee further increases in both petrol and diesel costs. Concerns exist that the ongoing escalation, which commenced on February 28, could lead to more significant challenges as the UK heavily relies on imported fuel supplies.
Despite these challenges, the UK Government reassures that the country’s fuel supply remains robust, emphasizing that common fuels are being purchased as usual. The UK’s oil supply comprises 35% oil, with up to 90 days’ worth of net oil imports stockpiled as a member of the International Energy Agency (IEA). The majority of these imports originate from the US and Norway, safeguarding the national supply from the impacts of the conflict in Iran.
Steve Gooding, director of the RAC Foundation, highlighted the financial burden imposed by the Iranian conflict on British motorists and businesses. The increased fuel prices have significant implications for households and companies, driving up costs and contributing to the overall cost-of-living crisis. Gooding emphasized the inelastic nature of fuel consumption, noting that consumers have limited options to mitigate the impact of rising fuel expenses in the short term.
