RAC Issues Urgent Warning for Diesel Drivers as Queues Form at UK Forecourts
The RAC has issued a critical warning to diesel drivers across the United Kingdom as significant queues form at fuel stations amid the ongoing crisis in the Middle East. Following continued conflict in the region, RAC head of policy Simon Williams has highlighted the escalating situation at forecourts, where reports indicate queues of up to 90 vehicles.
Sharp Increase in Fuel Prices
Simon Williams stated that the average price of petrol has increased by nearly 2.5p per litre since Saturday, while diesel has risen by more than 3p. This surge is directly linked to oil prices climbing above $81 per barrel, a level not seen since January of last year.
Williams explained: "Providing oil stays around this level, the average price of petrol shouldn't really rise to more than 136p. Diesel, however, is increasing at a faster rate."
He further warned that if oil prices reach $90 per barrel, petrol could exceed 140p per litre, and at $100, it could approach 150p per litre.
Advice for Drivers
Drivers have been strongly advised not to break their regular refuelling routines. Luke Bosdet, a spokesman for the AA, emphasized that it takes time for higher wholesale costs to filter through to pump prices.
Bosdet said: "Pump prices are heading up – wholesale costs had been increasing even before the weekend's strikes on Iran. The fuel trade has reported some increased demand, which was expected, but drivers in general are heeding advice to stick to their usual refuelling routines."
He added: "There's no point wasting time, fuel and money queuing when drivers don't need to."
Broader Economic Impact
The situation has broader implications for investors and the economy. Susannah Streeter, from the investment service Wealth Club, noted that investors have been preparing for a rise in geopolitical tensions.
Streeter commented: "Investors have been bracing for a rise in geopolitical tensions and now they are having to buckle up for another rollercoaster ride. However, for those in it for the long term, big bumps in the road are part of the journey."
She highlighted that assets such as gold and defensive stocks, including utilities, healthcare firms, companies selling consumer staples, and those with reliable, high-yielding dividends, tend to be more resilient during periods of unpredictability.
The warning from the RAC comes as the UK faces potential disruptions in fuel supply, urging drivers to remain calm and avoid panic buying to prevent further exacerbation of the situation.
