Motorists in Britain are being advised to cut back on journeys and change their driving style to save fuel as the price of oil has soared amid the conflict in the Middle East.
The price of crude oil has already crossed the $100 per barrel mark and climbed as high as $119.50 at the beginning of the trading week.
Experts warn that if tensions in the region continue, prices at the pump could surpass the record 191.5 pence per liter set during the energy crisis caused by the war in Ukraine.
The current increase already represents a jump of about 29% and exceeds the level of $116 per barrel reached in 2022.
British Prime Minister Keir Starmer has warned that the war in the Middle East “will have an impact on the economy” if it drags on.
Experts advise drivers to reduce trips
The AA recommends that drivers consider cutting back on non-essential journeys and adapting their driving style to use less fuel.
RAC experts say avoiding sudden acceleration and braking can help reduce fuel consumption.
Simon Williams, the RAC’s director of policy, said unleaded petrol could average 140p a liter in the immediate term and diesel could rise to at least 160p a litre.
The conflict in the Middle East affects the oil market
The rise in prices is linked to tensions in the Middle East and the blockade of the Strait of Hormuz, one of the most important sea routes for the transport of oil, through which about a fifth of the world’s exports pass.
Iran has warned it could attack oil tankers bound for Europe, Israel and the United States.
At the same time, US President Donald Trump said that the increase in the price of oil is “a very small price to pay”.
Impact on the economy and energy bills
The rise in oil prices is already starting to be reflected in day-to-day costs.
According to the RAC, petrol currently costs around £1.38 per litre, six pence more than when the conflict began on February 28.
Diesel rose from 1.42 pounds to 1.51 pounds per liter.
Analysts at Goldman Sachs warn that oil prices could reach $150 per barrel by the end of the month.
In this scenario, fuel for a family car could once again break the £100 mark, for the first time since the outbreak of the war in Ukraine.
Economist Paul Johnson has warned that rising energy prices could hurt the UK economy for a long time.
“If energy prices rise, import-dependent countries will inevitably become poorer during this period,” he told Times Radio.
Energy bills could rise again
The energy price cap in the UK is currently £1,758 a year, falling to £1,641 between April and June.
However, analysts at Cornwall Insight warn that from July bills could rise again by around £160 a year.
In this case, the average household bill could reach around £1,801 annually.
Regulator Ofgem said the energy market is now in a more stable position than during the previous energy crisis and suppliers are better prepared for economic shocks.
However, experts warn that the escalation of the conflict in the Middle East could lead to a rise in inflation and even mortgage rates.
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