Petrol prices hit new high amid Ukraine crisis

Petrol prices hit new high amid Ukraine crisis

Average UK petrol and diesel prices have hit new highs as the Ukraine crisis continues to affect oil prices.

According to the RAC, petrol prices rose to 149.30p per litre on Wednesday amid warnings it could soon pass £1.50.

Oil prices sky-rocketed after Russia ordered troops into two Ukrainian regions this week to “maintain peace”.

Wholesale gas prices are also climbing, threatening to further push up heating bills.

Russia is the world’s second-largest oil exporter after Saudi Arabia and the top producer of natural gas globally.

While the UK gets little of its oil and gas from Russia directly, there are concerns sanctions could constrict supplies and drive up wholesale prices worldwide.

UK consumers are already paying a high price for energy and fuel, with demand surging following the easing of Covid restrictions.

Former National Grid boss Steve Holliday told the BBC’s Today programme: “For the UK, it’s a price issue, it’s not a security supply issue.

“We already know that we’ve got consumers that are already experiencing huge jumps in their energy bills, so this is really very unwelcome.”

The RAC has warned petrol could go higher than £1.50 a litre in the coming days with diesel prices also on the rise, hitting 152.68p a litre on Wednesday.

While the UK gets most of its crude oil from Norway and the US, the third largest amount of imports come from Russia.

UK wholesale gas prices also jumped following Germany’s decision on Tuesday to halt the final approval of Nord Stream 2 – a new gas pipeline connecting the country with Russia.

This prompted a response from Dmitry Medvedev, Russia’s former president and now deputy chairman of its Security Council, who tweeted: “”Well, welcome to the brave new world where Europeans are very soon going to pay €2,000 for 1,000 cubic meters of natural gas!”

His comment suggests that prices may be set to double in the coming days and weeks.

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Ellie joined Gi Media in July 2021.