UK petrol prices poised to hit record 150p a litre soon, warns RAC
UK petrol prices are poised to hit a record 150p a litre later this week after the worsening tension in Ukraine added fresh pressure to the cost of living crisis facing households.
Crude oil prices reached more than $99 a barrel at one point on Tuesday in response to Vladimir Putin’s decision to recognise the independence of two breakaway regions in eastern Ukraine. Prices later slipped back after markets viewed the west’s initial sanctions response as weak.
But with Brent crude ending the day 1.6% higher at just under $97 a barrel, the RAC said motorists would quickly be paying 150p a litre for unleaded petrol and 154p a litre for diesel.
Analysts said the cost of crude – already at its highest level in seven years – was soon likely to push through the $100-a-barrel level.
Jeremy Nicholson, corporate affairs officer at Alfa Energy Group, said: “The deterioration of the situation in Ukraine and threat of military action by Russia is adding to the risk of disruption to European gas supplies, putting further pressure on UK/European wholesale gas and power prices. Oil prices are also being affected, with growing expectation oil could shortly reach or exceed $100 a barrel.”
Germany’s decision to withhold approval of the Nord Stream 2 gas pipeline drew a swift response from Dmitry Medvedev, Russia’s former president and now deputy chairman of its Security Council.
“Welcome to the new world where Europeans will soon have to pay €2,000 () per thousand cubic metres!” he tweeted – suggesting prices were set to double.
On a rollercoaster day, stock markets in Europe took their initial cue from Asia, which suffered big falls overnight after Russia sent troops into Donetsk and Luhansk.
Share prices later recouped most of their losses in
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