Petrol and diesel price warning issued as oil prices soar amid Israel-Hamas conflict
Oil costs are already starting to surge
GETTY
Drivers around the UK could see petrol and diesel prices rise in the coming weeks and months in response the ongoing Israel-Hamas conflict.
Since the start of the weekend, global oil prices have jumped following the situation between Israel and Hamas, with further fears the conflict could disrupt output of oil in the Middle East.
Israeli Prime Minister Benjamin Netanyahu said the war with Hamas “will be long but Israel will win”.
The value of Brent crude oil has climbed by around $6 (£4.91) a barrel since the start of October to $87.86 (£71.85), with some experts fearing that the cost of oil could rocket to $100 or £81.78.
On Monday, Israel ordered US-owned Chevron to shut down gas production at the Tamar field off the coast of the country, saying it would seek “alternative fuel sources” to meet its needs.
Speaking to GB News, Paul Barker, managing editor of carwow, said: “Numerous factors affect the price of fuel – inflation, fuel tax, VAT, profit margins - but the main one is the cost of crude oil.
“Oil prices are largely dictated by supply and demand, as well as the cost of extracting and producing it.
“Russia is one of the world’s largest producers of oil, and sanctions imposed by the West following its invasion of Ukraine have affected supply.
“And while it’s difficult to predict the global oil market, it’s certainly true that any instability can have serious repercussions in terms of consumers’ wallets.”
The previous peak of Brent crude oil came in February 2022 when Russia invaded Ukraine when it neared $120 a barrel (£98.14).
The high prices eventually led to fuel prices in the UK soaring, before finally peaking in June and July, with petrol reaching £1.90 a litre and almost £2 for diesel.
Fuel prices in the UK were also dramatically affected by supermarkets and retailers trying to make profit from inflated prices that drivers were forced to pay.
Paul Barker added: “During a cost-of-living crisis, nobody wants to see more pressure on prices, but geopolitical issues are a constant threat to pricing stability.
“Political uncertainty driving up fuel prices could drive consumers to look again at electric cars as the only major way of mitigating any future rises.”
Energy analyst Saul Kavonic said global oil prices were rising because tensions could spread to other nearby oil-producing nations like Iran and Saudi Arabia.
Other analysts have predicted that the oil markets will experience a “knee-jerk surge” in prices following the events in Israel and Palestine.
While Israel and Palestine are not major oil producers, there are concerns that the conflict could have a knock-on effect across the region.
Paul Barker continued, saying: “If drivers aren’t in a position to make the move to electric, there are ways to soften the blow of fluctuating fuel cost, such as making sure you’re paying the lowest price in the area rather than fuelling at your regular petrol station.”
LATEST DEVELOPMENTS:
There are fears the conflict could force oil prices up
REUTERS
He added that drivers should always use a petrol and diesel price checker to ensure they are getting the best deal, even if it means driving slightly further away to save money.