Oil prices have risen amid Russia’s invasion of Ukraine and that could start to affect UK motorists at gas stations.
Russia is one of the world’s largest oil producers and there are concerns that the conflict in Ukraine will affect distribution and supplies – here’s what you need to know.
Households are currently facing pressure on their budgets due to the cost of living crisis and rising energy bills.
The war between Russia and Ukraine seems like a matter of thousands of miles away.
But it could have an impact closer to home, especially at gas pumps.
There are warnings that clashes involving Russia and Ukraine will push up wholesale oil prices.
This could then be passed on to motorists at higher prices at the pumps, just days after petrol costs had hit record highs.
Here is the impact of the Russia-Ukraine conflict on petrol prices in the UK.
What is happening between Russia and Ukraine?
Russian tanks run over Ukraine border in the early hours of yesterday morning after President Vladimir Putin ordered the invasion he had long feared.
Ukraine has declared a state of emergency with 200,000 powerful Russian forces surrounding the country.
Britain, the United States and the European Union have imposed a number of economic and political sanctions to contain Russia.
But the conflict is creating instability in the stock market as well as in oil and gas prices due to Russia’s influence in these areas.
Why will gasoline prices increase?
The price of petrol is related to the price of oil in the wholesale market.
The more it costs to buy and deliver oil, the more gas stations have to pay, which is then passed on to drivers at the pumping stations.
Russia is the world’s third-largest oil producer and there are concerns that the conflict could reduce distribution and supply from the region.
Britain imports only 6% of its crude oil from Russia, according to the BBC.
That may not make a huge difference in supply but oil prices could rise elsewhere if people are looking for alternatives to Russian sources.
Gasoline prices will rise?
Oil prices are rising and bringing in record gasoline prices.
The price of Brent crude has surged past $100 a barrel this week, touching $103.19 yesterday – an eight-year high.
It has dropped to around $97.6 but is up more than $30 since the start of the year.
Costs will continue to soar, said Warren Patterson, head of commodity research at financial services firm ING.
“Prices are likely to remain volatile and high,” he said.
There are already signs that uncertainty and rising oil prices are affecting pump drivers.
The RAC said on Wednesday that the average cost of a liter of petrol or diesel at UK pre-forecast points was a record 149.30p or 152.68p respectively.
The driving group warned that drivers could have to pay an extra £15 to refill the tank.
What is the price of gas now?
RAC data showed the average price of unleaded petrol reached 149.67p/litre yesterday and is likely to rise.
Super unleaded at 161.85p and Diesel at 153.05p.
It warned that gas-pumps should expect prices to hit the “grim mark” of 150p in just a few days.
How to cut your gas costs
It is important not to panic buying as that can cause queuing around the foregrounds and intermittent supply constraints.
There are simple things you can do to make your gas tank last longer, such as making sure your tires are at the right pressure.
While you don’t want to drive miles for fuel, if you have a choice of gas stations in your area, you’ll have to pay a fee for shopping around.
Webpage Petrolprices.com allows you to do 20 free searches on gas stations near you to see who has the best rates.
Sarah Coles, personal finance analyst for Hargreaves Lansdown, suggests that the government could help with the rising costs.
“40 per cent of the total cost of petrol is tax on petrol and 17 per cent is VAT,” she said.
“However, beyond announcing another fuel tax freeze – which has become an annual tradition – it is highly unlikely to step in to protect motorists.
“Many of us are having to think seriously about how we use our cars and how we can cut down on fuel.”
She recommends removing the roof slats and boxes when you don’t need them to reduce air resistance and to carry heavy loads out of the trunk.
See how the Ukraine war might affect you in the UK.
Experts have predicted energy bills could soar to £3,000 as a result of increasing tensions between the two nations.
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https://www.thesun.ie/motors/8423205/petrol-fuel-prices-russia-ukraine/ Will the Russia-Ukraine conflict affect your fuel costs?