Petrol and diesel prices in the UK face a potential surge of up to 20p per litre in the coming weeks, sparking concern among drivers and households after Chancellor Rachel Reeves’ recent spring statement. The rise is attributed to escalating tensions in the Middle East, which have pushed oil and gas prices upward, reversing the recent trend of falling fuel costs.
FairFuelUK founder Howard Cox, a prominent fuel campaigner, expressed his disappointment following the Chancellor’s address in the House of Commons. Cox warned that the ongoing conflicts targeting refineries, oil tankers, and key shipping routes such as the Straits of Hormuz are driving crude oil prices relentlessly higher. At the time, Brent crude was priced above $84 a barrel, translating to an immediate increase of 5p to 10p per litre at the pumps.
Cox cautioned that if Brent crude sustains a rise to $100 per barrel, motorists could see fuel prices hike by 10p to 20p per litre within weeks, mirroring the significant spikes seen during the 2022 energy crisis. He criticized UK politicians for failing to reduce the country’s dependence on imported oil and called on Chancellor Reeves to cut or at least freeze Fuel Duty for the duration of the current parliament. Cox also urged for the enforcement of FairFuelUK’s PumpWatch initiative to clamp down on exploitative pricing within the fuel supply chain.
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Contrasting this viewpoint, RAC head of policy Simon Williams advised caution about immediate price shocks. He noted that wholesale fuel costs had been rising gradually over recent weeks, and while Brent crude prices saw a sudden increase, the impact at the pump may not be immediate. Williams appealed to fuel retailers to avoid passing on new wholesale costs prematurely and to maintain fair pricing for consumers.
In her Commons statement, Chancellor Reeves defended her strategy, emphasizing that the Treasury is better positioned than 18 months ago to handle fluctuations in gas and oil prices. She highlighted measures taken to reduce energy bills, freeze prescription charges, and rail fares, which collectively contribute to lowering inflation. Labour MP Yuan Yang underscored the importance of stronger cooperation with European governments to mitigate food costs and economic damage.
Reeves acknowledged the recent sharp increases in oil and gas prices driven by Middle Eastern events but insisted that the government’s fiscal approach will help cushion the UK economy against these shocks, contrasting this with what she described as the mismanagement of the previous Conservative administration.