Drivers are being advised against panic buying as queues start forming at certain fuel stations. Some drivers are choosing to fill up their tanks as a precautionary measure.
This surge in fuel demand follows a rise in oil prices due to heightened tensions in the Middle East. Concerns have been raised about potential disruptions to oil and gas shipments through the crucial Strait of Hormuz amid the escalating conflict involving Iran, the US, and Israel.
Recent reports indicate that some gas stations have run out of fuel, although it remains unclear whether this is due to increased demand or unrelated supply issues. Instances of “sorry out of use” signs appearing at a station in Croydon and long queues at a Costco station in Liverpool have been noted.
Experts from motoring groups emphasize that there is no need for drivers to change their refueling habits drastically. Despite the uptick in oil prices, it takes time for these cost increases to impact fuel prices at the pump. Additionally, with the approaching spring season, fuel consumption tends to decrease as engines operate more efficiently.
While there have been gradual increases in wholesale fuel costs, the immediate effect on pump prices may not be significant. However, there is a call for retailers to reflect any wholesale fuel cost hikes fairly at the forecourt to avoid sudden price spikes for consumers.
Although average petrol prices have slightly decreased since the beginning of the year, ongoing geopolitical tensions could potentially reverse this trend. Price variations across different regions persist, with efforts by the government to regulate petrol retailers’ profit margins. Various locations in the UK showcase differing petrol prices, with some areas offering more affordable rates than others.
The ongoing conflict has led to disruptions in global oil and gas shipping, with shipping rates in the Middle East soaring. The vital Strait of Hormuz has experienced severe disruptions, impacting a substantial portion of global oil and gas transportation.
As the conflict continues, it is anticipated that pump prices will likely rise in the coming weeks, potentially returning to levels seen earlier in the year. Drivers are advised to monitor fuel prices and consider the impact of ongoing geopolitical events on fuel costs.