Forecourt operators have been cautioned against capitalizing on the surge in oil prices, with reports indicating that some have raised pump prices by nearly 9p per liter recently. The escalating conflict in the Middle East has started to impact the prices of petrol and diesel, with the average price of petrol climbing by close to 2.5p and diesel by over 3p between last Saturday and this Wednesday, according to the RAC. However, there are instances of even steeper price hikes at certain forecourts.
Founder of FairFuelUK, Howard Cox, expressed concerns over what he termed as “opportunistic profiteering,” citing feedback from over 120 campaign supporters across the UK reporting significant price increases in the past 48 hours. Daisy Cooper, the Lib Dem Treasury spokesperson, criticized forecourts for potentially exploiting consumers already burdened by high fuel costs, calling on the competition watchdog to intervene and caution fuel giants against overcharging customers.
Gordon Balmer, executive director of the Petrol Retailers Association, acknowledged that the Middle East conflict has pushed up wholesale petrol and diesel costs, necessitating a rise in pump prices. The association has urged Chancellor Rachel Reeves to reconsider a planned fuel duty increase later this year. Oil prices continued to climb, with Brent crude surpassing $83 per barrel, raising concerns about potential spikes in energy bills for households.
Dan Coatsworth, head of markets at broker AJ Bell, highlighted the anxiety surrounding the rapid surge in oil prices and its potential impact on energy bills. The evolving situation in the Middle East has created uncertainty among investors, prompting questions about the duration and severity of a possible energy crisis. Crude oil markets remain volatile, with supply risks heightened following recent attacks in the region, particularly concerning trade routes through the Strait of Hormuz.