Forecourt operators are being cautioned against taking advantage of the surge in oil prices as reports suggest that some have raised pump prices by nearly 9p per liter recently. Motorists are observing an increase in petrol and diesel prices due to the repercussions of the ongoing conflict in the Middle East.
According to the RAC, the average price of petrol went up by almost 2.5p per liter and diesel by over 3p between last Saturday and this Wednesday. However, there are instances of significantly higher price hikes at certain forecourts.
Howard Cox, the founder of FairFuelUK, highlighted concerns about opportunistic profiteering, with reports from over 120 campaign supporters indicating an average rise of 6.7p for petrol and 8.8p for diesel in the past 48 hours. Cox emphasized that many forecourts are selling fuel at inflated prices despite purchasing stocks before wholesale price hikes, suggesting a prevalence of opportunistic behavior.
Daisy Cooper, the Lib Dem Treasury spokesperson, expressed worries about escalating fuel costs impacting families already struggling with living expenses. She urged regulatory intervention to prevent fuel retailers from exploiting consumers and emphasized the potential consequences of excessive price increases.
Gordon Balmer, the executive director of the Petrol Retailers Association, attributed the rise in pump prices to increased wholesale costs of fuel due to the Middle East conflict. He highlighted the negative economic effects of rising fuel prices, including higher inflation and added strain on household budgets.
Amidst escalating oil prices, with Brent crude surpassing $83 per barrel, concerns have arisen over potential spikes in energy bills later this year. Dan Coatsworth, head of markets at broker AJ Bell, expressed apprehension about the rapid increase in oil prices and its implications for global economic stability, prompting uncertainty among investors regarding the long-term energy outlook.
The volatile situation in the Middle East has heightened concerns about oil supply risks, particularly related to trade flows through the Strait of Hormuz. These developments underscore the ongoing instability in crude oil markets and the potential for broader economic impacts.