UK Petrol Prices Soar to 170p per Litre Amid Severe Shortages
Petrol prices across the United Kingdom have skyrocketed to 170p per litre at certain forecourts, as garages experience significant shortages. Motorists have reported widespread fuel scarcity at a series of petrol stations, including prominent chains like BP and Tesco, exacerbated by the ongoing war and crisis in the Middle East.
Record High Prices and Extensive Queues
The cost of petrol has reached its highest point in three years, with data revealing that Asda in Bothwell, near Glasgow, is currently charging drivers 169.9p per litre, marking the highest price in Britain. Concurrently, queues of over 90 cars have been observed snaking around roads adjacent to forecourts in northern England, particularly at Costco branches on Merseyside, where lengthy lines have formed.
Expert Insights on the Fuel Crisis
Simon Williams, head of policy at the RAC, issued a statement urging retailers to act fairly. "Even though the price of dated Brent crude rose by $5 a barrel on Monday to $78, the impact of this shouldn't be felt for over a week," he said. "Knowing the tendency for price increases to be passed on far more quickly than cuts, on behalf of drivers we urge retailers not to put up the price of fuel they've already got in forecourt tanks and reflect any increases in wholesale fuel fairly on the forecourt."
Professor Michael Tamvakis, professor of commodity economics and finance at Bayes Business School, part of City, University of London, highlighted the supply chain risks. "The closure of the Straits of Hormuz is a key bottleneck for the flow of both oil and gas," he explained. "In short, we could lose something like six million barrels per day from the 14 million barrels exported by GCC countries. We face a growing bottleneck in supply if the Straits of Hormuz remain closed for long and if there is no insurance available for vessels sailing through the region."
He added, "The closure also completely chokes natural gas supply from the Middle East and Gulf region. There are no pipeline alternatives. It is fortunate that we are entering the northern Hemisphere spring. That fall in demand might ease any pressures and price rises."
Broader Economic Impact
The surge in petrol prices coincides with a spike in UK gas costs, which have climbed to over £1.44 per therm, their highest level in three years. This dual increase in fuel and energy prices is placing additional strain on households and businesses, amid concerns that the situation could worsen if the Middle East conflict persists.
