Decrease in supply and increase in gasoline price in the U.K
The price of each litre of diesel has increased by 10 cents, making the cost of filling up the tank for British drivers $5.54 more than in July. In the same period, the price of each gasoline in the U.K. has grown by about 8 cents Because the price of oil in the world market increased significantly in August due to the decrease in supply by the OPEC+ countries. Expensive gasoline charges in the U.K. have troubled drivers.
An increase in the price of oil causes an increase in the gasoline price
Simon Williams, the spokesman of the RAC, says that the price of oil has led to an increase in the price of fuel in the U.K. and has caused the drivers of this country to pay more for energy. He says a big shock came to British drivers in August because they did not expect such a price increase. The surge in fuel expenses across the United Kingdom worries the British.
The reason for the increase in oil prices in the world markets
In early September, the global oil market saw its prices soar to the highest levels in recent months, driven by predictions of limited oil supply from Saudi Arabia and Russia to the world market. Current data indicates that British drivers encountered one of the most substantial fuel price increases in over two decades in August. The RAC reported that U.K. motorists experienced this significant surge in fuel prices during the same month.
Increase in wholesale fuel costs
The 8 pence per litre of diesel is also the sixth-largest monthly increase in the most critical period. The RAC company cited the increase in oil price as the reason for the increase in fuel prices, which has increased by nearly 12 dollars per barrel since the beginning of July and reached over 88 dollars per barrel. The decrease in OPEC+ production and supply causes this increase. RAC spokesman Simon Williams said: “While the increase is bad news for drivers, it could have been far worse had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up.”
A shock to British drivers
Evidence shows that soaring diesel rates in Britain have led to drivers’ dissatisfaction. RAC spokesman Simon Williams said: “August was a big shock to drivers as they had grown used to seeing far lower prices than last summer’s record highs. Seeing £4 or more go on to the cost of a tank in just a few weeks from a pump price rise of 6-7p a litre is galling, particularly for those who drive lots of miles or run an older, less fuel-efficient car.”
The sharpest monthly jump in fuel prices in the last 23 years
The British automotive services company, RAC, announced that the country’s drivers have witnessed the sharpest monthly jump in fuel prices in the past 23 years amid the rise in global oil prices last month. RAC data also shows that with global crude oil prices rising by almost $15 a barrel since July to more than $90 a barrel following production cuts by OPEC+ members, gasoline prices in August were close to 6.68 pence a barrel. Every litre increased.
Reduction in the supply of crude oil from Russia and Saudi Arabia
In early September, crude oil prices reached their highest point since November of the previous year, reflecting a tightening market. Anticipations of extended supply cuts by Saudi Arabia and Russia until October contributed to this trend. On Tuesday, global oil prices witnessed an upswing, with West Texas Intermediate (WTI), the U.S. crude oil benchmark, surpassing $87 per barrel and Brent oil exceeding $90 per barrel.
The reasons for the increase in fuel prices in the U.K
The increase in fuel prices in the U.K. has two main reasons: One is the effort of the government of this country to become independent from the import of energy carriers from Russia, and the other is the increase in the price of oil in the world market. Of course, it is not only the British who have been severely affected by the rise in fuel prices Because the price of these energy carriers in the U.S. and, in general, in the E.U. has increased significantly. The imposition of sanctions against Russia has also increased fuel prices in this country.
Asking drivers for help from the government
Soaring diesel rates in Britain harm the job security of drivers. Associations of drivers in the United States have asked the government of this country to put measures to help solve the increase in fuel prices. The U.K. government has reduced fuel duty by 5 pence per litre, but drivers say the price reduction has yet to be effective. In the U.K., it is customary for people to go to a small shop located in a gas station after filling up their tank and paying the amount. The increase in the gasoline price in the U.K. has led to a significant increase in the theft of gasoline from gas stations in this country.
40% increase in thefts from British gas stations
The BBC reported that according to the average price of petrol in the U.K., it costs an average of £100 to fill a tank of a typical car. The Forecourt Eye company, which works with over a thousand gas stations and garages in the U.K., announced that since January, non-payment of gas charges at gas stations has increased by nearly 40%. According to company officials, some people run away from the place after filling the gas tank without paying or on the pretext of not having their wallet with them.
Russia’s invasion of Ukraine and the increase in gasoline prices
The rising cost of petrol in the U.K. will lead to a fuel crisis in this country. Experts attribute the rise in U.K. petrol prices to supply chain disruptions from Russia’s invasion of Ukraine and the low exchange rate between the pound and the dollar. Motorists are reeling from a dramatic hike in gas prices last August, the most significant monthly increase in more than two decades. The union revealed that the cost of filling up a petrol car in the U.K. has risen by around £4 a month, while diesel has risen by around £4.50, suggesting the sharp increase in fuel prices is due to higher oil prices. OPEC+ countries decide to reduce oil production. Soaring diesel rates in Britain will add to the economic problems of this country. Steadily rising fuel costs have worsened the U.K.’s cost of living crisis.
