Fuel prices in the UK hit an eight-year high as gas stations run dry | Supply chain crisis

Fuel pump prices in the UK have reached their highest level in eight years, as filling stations dry up amid panic buying, and a further jump is expected as energy costs fall. wholesale continue to rise.

Figures from the RAC show that the average price of a liter of gasoline rose from 135.87 pence on Friday to 136.59 pence on Sunday as motorists scrambled to fill up their vehicles, with the cost of gasoline reaching the highest level. since September 2013.

As queues continued to form on the esplanades the Monday after a chaotic weekend, the auto group warned that prices could rise further this fall as the world oil price soars to the highest level in three years.

He said some retailers had also taken advantage of panic buying by increasing prices, but reiterated that there was no shortage of fuel at refineries and asked motorists to only buy what they need immediately.

“When it comes to pump pricing, the outlook is pretty bleak for drivers. With the cost of oil on the rise and now near a three-year high, wholesale prices are going up, which means that retailers are paying more than they did a few days ago for the same amount of fuel, “he said. Simon Williams, RAC Fuel. spokesman.

“We may see higher prices at gas stations in the coming days, regardless of the current supply problem.”

Oil prices in global energy markets rose for the fifth day in a row on Monday and the price of Brent crude reached nearly $ 80 (£ 58) a barrel, the highest since October 2018, amid supply concerns and increased demand around the world after the shutdown.

It occurs when the government faces pressure on the management of the economy as households prepare to a difficult winter of rising cost of living, as ministers prepare to cut the benefits of universal credit and increase the national insurance tax for workers.

Labor said the combined effects of the energy crisis, benefit cuts and tax increases had caused a “perfect storm” that would disproportionately harm working families. Jonathan Reynolds, the secretary for shadow work and pensions, said: “It is not too late for the government to change course, cancel its universal credit cut and support struggling families this winter.”

Figures from HSBC UK suggested that Friday was the busiest day to spend at gas stations in recent memory. Payments were up 50% from the same day last week, according to the bank’s data, and consumers spent just over £ 30 on average compared to just over £ 20 on average for a normal Friday.

Economists said rising gasoline prices would add to inflationary pressures, while persistent fuel shortages could hit consumer confidence and slow economic activity if households and businesses began restricting their travel.

It comes after the Bank of England warned last week that Higher energy costs would drive inflation above 4% this winter., and the cost of living indicator is expected to remain at persistently high levels until the middle of next year.

George Buckley, an economist at the Japanese bank Nomura, said: “We remain concerned about the risk that rising energy prices, lower confidence and rising virus cases could ruin the nascent ones. [UK] Economic recovery.”

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