The invasion of Ukraine by Russia has skyrocketed oil prices all around the world and pushed up the cost of fuel in the UK. Diesel prices in the UK rose by an average of more than 2p in a single day as Russia’s invasion of Ukraine proceeds to affect worldwide oil prices. The fuel bounced to a record £1.76 per litre on Tuesday, up from nearly £1.74 on Monday. Petrol prices, which have also increased to record elations, rose to almost £1.65p a litre from about £1.64.
Oil prices are primarily determined by the cost of crude oil and the dollar exchange rate, as consensuses are made in dollars. The UK only imports about 6% of oil from Russia, so is not as dependent on Russia for the supply of the goods as other European countries are and have said it plans to gradually eliminate it. The UK is, however, influenced by multinational fluctuations in price.
Energy Minister Greg Hands said the UK’s shift to cleaner forms of energy output was “an issue of national security” and not just of decarbonization. Speaking at an event in London, he said: “By switching to cheaper power generated in the UK, for the UK, we will ensure that we’re not dependent on any unfriendly foreign country to keep our homes warm and lit.”
The RAC said wholesale fuel costs had lowered for two days in a row, but cautioned that prices at the pump will remain elevated for some time. Andrew Opie, of the BRC, stated that they would do everything they could to offer the best value-for-money across petrol forecourts. Prime Minister Boris Johnson has been visiting Saudi Arabia and the United Arab Emirates, to talk about energy security and other topics.
The price of Brent crude oil – the global bar for prices – drifted around $100 per barrel on Wednesday, having previously reached record highs of more than $130 a barrel in the sudden outcome of Western countries slamming Russia with sanctions.
Greg Hands said the UK’s transition to cleaner forms of energy production was “an issue of national security” and not just of decarbonization. “We continue to remain hopeful that retailers will soon start to pass on recent reductions in the price of wholesale fuel to drivers when they next buy supply. That ought to lead to petrol stabilizing at around 160p while diesel ought to stay where it is based on current wholesale prices,” said Simon Williams, the spokesperson for RAC.