Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Petrol prices hit new high amid Ukraine tensions

Petrol prices hit new high amid Ukraine tensions

Average UK petrol and diesel prices have hit new highs as the Ukraine crisis continues to affect oil prices, the RAC has said.

On Wednesday, petrol prices rose to 149.30p per litre amid warnings it could soon pass £1.50.

Oil prices jumped after Russia ordered troops into two Ukrainian regions this week to "maintain peace".

Wholesale gas prices also continue to climb, threatening to further push up heating bills.

Russia is the world's second-largest oil exporter after Saudi Arabia and the top producer of natural gas globally.

The UK only gets 6% of its crude oil and 5% of its gas from Russia, but there are concerns sanctions could constrict supplies and drive up prices worldwide.

UK consumers are already paying a high price for energy and fuel, with demand surging following the easing of Covid restrictions.

Former National Grid boss Steve Holliday told the BBC's Today programme: "For the UK, it's a price issue, it's not a security supply issue.

"We already know that we've got consumers that are already experiencing huge jumps in their energy bills, so this is really very unwelcome."

The price of Brent crude oil, an international benchmark, hit a seven-year high of more than $99 (£73) on Tuesday before falling back on Wednesday.

However, fuel pump prices lag behind oil prices and the RAC has warned petrol could go higher than £1.50 a litre in the coming days.

Diesel has also risen, hitting 152.68p a litre on Wednesday.

Justin Yates and Matt Williams run a removals company


Matt Williams, 30, runs Williams & Yates, a removals company that operates across the UK and Europe with a fleet of 11 vans and lorries.

Rising fuel costs have forced it to put up its prices and he fears it might impact the business in the months ahead.

"Unfortunately, we do have to pass [these costs] onto the customer," he told the BBC. "All the competition has to do the same, but I think it does make some consumers reconsider their moving options."

The firm offers basic and bespoke services, and he expects more customers to choose the cheaper option in the coming months rather than "paying loads of money".

Gordon Balmer, executive director of the Petrol Retailers Association, a trade body for independent UK forecourts, said whether fuel prices continue to rise depends on a number of factors.

"If [conflict] really sparks off in Ukraine, we could prices escalating dramatically," he said.

However, he added that the US is in the process of negotiating a nuclear deal with Iran which could see more oil come onto the market.

Gas prices


UK wholesale gas prices also jumped following Germany's decision on Tuesday to halt the final approval of Nord Stream 2 - a new gas pipeline connecting the country with Russia.

That decision drew a swift response from Dmitry Medvedev, Russia's former president and now deputy chairman of its Security Council.


"Well, welcome to the brave new world where Europeans are very soon going to pay €2,000 for 1,000 cubic meters of natural gas!" he tweeted - suggesting prices were set to double.

UK gas prices for delivery in March rose by 13.5p to 200p per therm, though that is still much lower than the highs of December last year, when it peaked at over 400p per therm.

Western nations and Japan on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine.

The UK said it was ready to impose further sanctions in the event of a full invasion of Ukraine, targeting more Russian banks and individuals as well as companies in the energy, defence, technology and chemical sectors.

After a volatile trading session on Tuesday, global stock markets climbed on Wednesday before falling back again.

Towards the end of the day, the UK's FTSE 100 was flat while France's CAC-40 and Germany's Dax had lost between 0.2% and 0.5%. The main three US indexes were all in the red.

'Enormous' rises


High energy prices in the UK have played a major part in pushing up the cost of living recently, while wages have lagged behind price rises.

Inflation currently stands at 5.5% - its highest level in 30 years.

Speaking to the Treasury Select Committee of MPs on Wednesday, Jonathan Haskel, a member of the Bank of England's Monetary Policy Committee, said energy prices accounted for nearly half of the rise in inflation over the last year.

That is likely to rise to 70% in the first three months of 2022, according to Bank of England governor Andrew Bailey.

The Bank deputy governor, Ben Broadbent, said: "If you look at the increase in energy bills this year, it is just about twice as big as any single year in the 1970s - it is enormous."

The Bank expects inflation to hit 7% in spring when the price cap on household energy bills is raised. This is far above the Bank of England's 2% target.

From April, about 18 million homes on standard tariffs will see an average increase of £693. Meanwhile, 4.5 million prepayment customers can expect their energy costs to rise by an average £708.

Consumers are also being squeezed by rising prices on goods as many companies pass on higher costs such as fuel, shipping and wages to their customers.

As well as the rise in energy prices in April, staff, companies and the self-employed will also have to pay an extra 1.25p on the pound in National Insurance. The rise is being introduced by the government to fund health and social care.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
United Nations Calls for Global Action Against Disinformation and Hate Speech Online
Tucker Carlson warns of an inevitable clash in Western societies over mass migration
OpenAI CEO Sam Altman praises the rapid progress of Chinese tech companies.
Poland's President Karol Nawrocki ENDS support for Ukrainian citizens:
Italy's PM Giorgia Meloni highlights record employment and economic growth
Chancellor Friedrich Merz Re-elected as CDU Leader, Opposes AfD Influence
Trump Directs Government to Release UFO and Alien Information
Trump Signs Global 10% Tariffs on Imports
UK Government Considers Law to Remove Prince Andrew from Royal Line of Succession
Two teens arrested in France for alleged terror plot.
US Supreme Court Voids Trump’s Emergency Tariff Plan, Reshaping Trade Power and Fiscal Risk
Greek Prime Minister Kyriakos Mitsotakis advocates for a ban on minors using social media.
Meanwhile in Time Square, NYC One of the most famous landmarks
Jensen Huang just told the story of how Elon Musk became NVIDIA’s very first customer for their powerful AI supercomputer
Former British Prince Andrew Arrested on Suspicion of Misconduct in Public Office
Former President Yoon Suk Yeol Sentenced to Life in Prison for Abuse of Authority
Unitree Robotics founder Wang Xingxing showcases future robot deployment during Spring Festival Gala.
German Chancellor Friedrich Merz calls for real name use on social media.
Italian Police Arrest Man After Alleged Attempt to Abduct Toddler at Bergamo Supermarket, Child Hospitalised With Fractured Femur
British Tourist Arrested at Hong Kong Airport After Meltdown and Vandalism
European Commission Plans Purchase Incentives Limited to Vehicles Manufactured Largely in the EU
French District of Pas-de-Calais Introduces Immediate License Suspension for Drivers Using Mobile Phones
Volkswagen Targets €60 Billion in Cost Reductions as Sales Decline and Global Pressures Intensify
Eighty-Year-Old Lottery Winner Sentenced to 16.5 Years for Drug Trafficking
Rubio Calls for Sweeping U.N. Reform, Saying It Has Failed to End Wars in Gaza and Ukraine
10,000 Condoms Distributed at Winter Olympics 2026 Athlete Village Depleted Within 72 Hours
Poland's President Advocates for Evaluating Independent Nuclear Weapons Development
Mayor of Serdobsk in Russia’s Penza Region Resigns After Housing Certificates Granted to Migrant Family Trigger Public Outcry
China’s EV Makers Face Mandatory Return to Physical Buttons and Door Handles in Driver-Distraction Safety Overhaul
UK Green Party Considering Proposal to Legalize Heroin for an Inclusive Society
OpenAI and DeepCent Superintelligence Race: Artificial General Intelligence and AI Agents as a National Security Arms Race
We will protect them from the digital Wild West.’ Another country will ban social media for under-16s
Heineken announces cut of 6,000 jobs due to declining beer demand
Apple iPhone Lockdown Mode blocks FBI data access in journalist device seizure
Belgium: Man Charged with Rape After Faking Payment to Sex Worker
KPMG Urges Auditor to Relay AI Cost Savings
Canada Opens First Consulate in Greenland Amid Rising Geopolitical Tensions
China unveils plans for a 'Death Star' capable of launching missile strikes from space
Investigation Launched at Winter Olympics Over Ski Jumpers Injecting Hyaluronic Acid
U.S. State Department Issues Urgent Travel Warning for Citizens to Leave Iran Immediately
Wall Street Erases All Gains of 2026; Bitcoin Plummets 14% to $63,000
Eighty-one-year-old man in the United States fatally shoots Uber driver after scam threat
Political Censorship: French Prosecutors Raid Musk’s X Offices in Paris
AI Invented “Hot Springs” — Tourists Arrived and Were Shocked
France Begins Phasing Out Zoom and Microsoft Teams to Advance Digital Sovereignty
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Global Shifts in War, Trade, Energy and Security Mark Major International Developments
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
×