Press release -
RAC warns of fuel price hike following Russian military move into Ukraine
The political unrest created by Russia’s decision to send troops into the Crimea region of Ukraine will lead to petrol and diesel prices rising in the coming weeks, the RAC warned today.
Fuel traders have already begun to buy up stocks to guard against being caught out in the event of the situation worsening, which automatically causes prices to increase due to a tightening in supply. And, to make matters worse, the price of oil will almost certainly be negatively affected, further increasing fuel costs and, in turn, forecourt prices.
British motorists have enjoyed more than a month* of the lowest average pump prices for three years, with petrol below 130p a litre. The low forecourt prices were a result of fuel retailers passing on savings in the wholesale price which had eased in mid-January to around 100p a litre for petrol and 129p for diesel.
However, even before the appearance of Russian troops in Ukraine, wholesale prices had begun to rise again as a result of the pound losing ground against the dollar (despite it being around 12% stronger than it was a year ago) and oil stocks declining, thereby causing prices to rise.
RAC head of external affairs Pete Williams said: “While savings were only small, at 129p a litre the price was 11p cheaper than it was in early March last year which meant a saving of around £6 on a tank of petrol for an average family car like a Ford Focus and £5 for a tank of diesel.
“The tensions in Ukraine, brought about by Russia’s unprecedented move, will unfortunately affect everyone driving a vehicle in the UK as the fuel market is intrinsically linked to major international political events. While we can all only hope for a speedy resolution to this situation, from a motorists’ perspective we really need the pound to continue performing well against the dollar as this could help to offset some of the inevitable price rises.”
Motorists wanting to keep a closer eye on which way fuel prices are headed can do so by visiting the RAC’s Fuel Prices Explained pages at http://www.rac.co.uk/advice/fuel-price.
The price of fuel is one of the hottest topics with drivers nearly half (46%) of 1,500 motorists surveyed for the RAC Report on Motoring 2013 saying the cost of driving is still their number one motoring concern. The report also revealed that 78% of drivers see their car as an integral part of their lives, saying they would find it difficult to adjust life without a vehicle. More than half (54%) said they would have a fuller social life, visiting family and friends more often, if fuel was more affordable.
A supporter of the FairFuelUK campaign, the RAC strives to be the motorist’s champion by calling on the Government to drive down costs at the pumps by capping, or reducing fuel duty from nearly 58p per litre.
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Notes to Editors
* On Sunday 19 January 2014 the average petrol price was recorded at 129.82p, the first time it had fallen below the 130p mark since the end of February 2011*. The price of diesel had also dropped to its lowest since mid-July 2012 at 137.27p. The last time the price of petrol was below 130p a litre was on 25 February 2011 at 129.86. Diesel was last below 137.27p on 16 July 2012.
About the RAC
First formed in 1897, the RAC has been looking after the needs of its members and championing the interests of drivers for more than 120 years.
Today it has more than eight million members and is one of the UK’s most progressive motoring organisations, providing services for both private and business motorists. Whether it's roadside assistance, insurance, buying a used car, vehicle inspections and checks, legal services or up-to-the-minute traffic and travel information – the RAC offers a solution for all motoring needs. The RAC is committed to making motoring easier, safer, more affordable and more enjoyable for drivers and road users.
The RAC is the motorist’s champion and campaigns to support the interests of its members and UK drivers at a national level. This includes voicing concerns about the increasing cost of motoring, particularly the price of fuel and the high level of tax levied on it, advancing levels of road safety, and supporting the needs of all drivers, from young to old.
The RAC’s annual Report on Motoring – first published in 1989 – is one of a kind and provides a clear insight into the concerns and issues facing today’s motorists.
For the very latest news on UK fuel prices, check RAC Fuel Watch. It provides a comprehensive guide to the latest UK unleaded petrol and diesel prices – both at the wholesale level and at the pump - and tracks these prices daily to help drivers check if the price they pay to fill up is a fair one.
