The war in the Middle East, sparked by US-Israeli strikes on Iran, has had a significant effect on fuel prices in the UK. The country's reliance on oil imports from the US and Norway means that the supply chain disruptions caused by the conflict have not significantly affected Britain's access to oil.
However, despite this, the global market demand for oil has led to a substantial increase in petrol prices in the UK during March. This is largely due to the price of oil being dictated by global markets, rather than the specific source of supply.
The result of this is that the price of petrol and diesel has increased at a record level in the UK during March, according to data from the RAC. A litre of petrol began the month at 132.83p but rose by 20p to 152.83p by the end of the month.
This represents a significant increase, beating the previous record for a single-month rise in per-litre price of petrol set in June 2022. On that occasion, petrol rose by 16.6p per litre to 191.43p by the end of the month.
In contrast, diesel prices saw a relatively minor increase, with a litre rising by over 40p last month to 182.77p from its starting point of 142.38p.
The rapid rise in fuel prices has been described as 'unprecedented' by RAC head of policy Simon Williams. While this is the largest pence-per-litre increase ever recorded in a single month, it's not as great in real terms as those seen during the 1973 oil crisis when the price of a barrel quadrupled.
The increases drivers have had to endure in March far exceed those seen in the early days of the war in Ukraine. The monthly rise in petrol prices is bad enough, but the jump in diesel prices is even harder to swallow at 40p a litre.
With long-term RAC research showing eight-in-10 people are dependent on their vehicles, these costs must really be taking their toll on both households as well as businesses.
The record-breaking fuel price increase highlights the need for policymakers and industry leaders to address the ongoing impact of global events on everyday consumers. As the situation in the Middle East continues to unfold, it's essential that measures are put in place to mitigate the effects of such disruptions on the economy.
The record-breaking fuel price increase in the UK highlights the far-reaching impact of global events on everyday consumers.
