A petrol station with unleaded fuel in Southend, England. (Image: Getty)
Britain “needs help now” to deal with rising fuel prices caused by the Iran war, the Labor Party has urged. Forecourt shortages have already been reported in Northern Ireland as the US-Israel war with the Islamic Republic has hit global supplies and sent crude prices soaring.
Fuel prices have surged after Iran closed the vital Strait of Hormuz, a shipping route that carries 20% of the world’s oil and gas supplies. Diesel prices have reached their most expensive level since December 2022, with the average price of a liter of fuel reaching 181.2p in UK forecourts on Monday, according to RAC analysis. This represents a 27% increase from 142.4p on February 28, the day the war in the Middle East began.
Average petrol prices have reached 152.0p per litre, up 14% from 132.8p in the same period. There were sporadic reports of several pumps on forecourts being shut down in Northern Ireland and in Southend, Essex, a Tesco petrol station was photographed running out of unleaded on Monday.
Read more: Panic at the pumps as petrol drivers rush to stock up before prices rise
Read more: Public transportation made free due to fuel shortage due to Iran war
Petrol prices have skyrocketed since the Iran war began on February 28. (Image: Getty)
Chancellor Rachel Reeves faces increasing pressure to halt a planned increase in fuel duty starting in September as a four-year moratorium on the levy expires.
But speaking to the Daily Express, AA president Edmund King urged Labor to act quickly to avert disaster for the industry and consumers. He said: “The Government may consider what they will do with fuel duty in September, but clearly that is five months away and arguably the industry needs help now.
“With higher pump prices, the government is gaining more in VAT, so there is some ‘free’ money in the system that can be used to help drivers.
“It is at such times that the reality of the importance of road transport dawns upon us. Roads are essential for most freight and passenger journeys.”
“Deliveries to shops, the service economy like plumbers and most journeys in rural areas cannot be undertaken by public transport. The additional increase in diesel prices adversely impacts businesses, deliveries, service industries and the self-employed.
“The government should be concerned about skyrocketing diesel prices because these prices are what drive inflation. One reason for the extra cost of diesel is that the UK refines most of the petrol in this country while diesel is refined elsewhere which increases the cost.”
Ireland has reduced duty on one liter diesel by 20% and petrol by 15% till the end of May. The states of Victoria and Tasmania have halved fuel charges and offered free public transport. Spain and Poland have also cut VAT at the pump, with Madrid from 21% to 10% and Warsaw from 23% to 8% to soften the blow on consumers.
In Germany, where diesel prices have risen 40%, authorities have set a limit of a maximum of one price increase per day at petrol stations.
Fears of fuel shortage have unsettled cricket fans in Pakistan as authorities ordered spectators to watch the Pakistan Super League, scheduled to run from March 26 to May 3, from home. The number of venues hosting matches has also been reduced from six to two.
Meanwhile, US President donald trump Protesters angry over a war with Iran last night threatened that the United States would “blow up and completely destroy” Iranian oil and energy infrastructure if the Strait of Hormuz is not “open for trade”.
Mark Waddington, CEO of Chainoil EnergyA UK-based international oil and energy consultancy firm said: “This feels like Donald Trump’s Suez moment, and he is not learning the lessons of history.
“When Britain and France tried and failed to take over the Suez Canal in the 1950s, the Egyptians stopped ships there and blocked it, preventing everyone from using it.
“Historians often write of this as the end of Britain’s power on the international stage, and the feeling in the industry is that with Trump the same is going to happen with Iran.
“Maybe he’s realizing why all his predecessors didn’t go to war with Iran?”
Mr Waddington said the longer the conflict continues in the Middle East, the worse its impact on the British public could be.
The war with Iran has been going on for more than a month (Image: Getty)
He said: “If jet fuel prices rise even higher and airlines have to bear the burden, fewer people will fly for holidays, slowing demand.
“Some people will still have to go somewhere in their car, whether it’s £1.30 a liter or £3 a litre, but if it comes down to it a lot of people will think twice about doing something for fun at the weekend.
“There’s a lot of talk about how 20% of the world’s oil production goes through the Strait of Hormuz, well there are ways around it, so it’s more like 10%, but what’s more worrying is that there are also some significant large oil refineries in the region that supply products to places like Europe. In the short term, Europe has been able to get supplies from other parts of the world, but in the long term, if it remains blocked, there will be trouble ahead.”
A spokesman for Fuels Industry UK, the oil and gas industry body, said companies were monitoring the fuel supply situation. He said: “Supply in the UK remains stable and our members are working hard to ensure this remains the case.
“We are aware of ongoing reports regarding fuel availability at a small number of forecourts in Northern Ireland. Supplies are operating as normal and there is no need for any changes to normal shopping habits in Northern Ireland.”
David Boot, UK public affairs and policy director at the Road Haulage Association, said: “Rising fuel prices are a major challenge for the haulage, coach and van sectors, which are key economic drivers and generally operate on thin margins. Some operators are also concerned about local availability of fuel and delivery timelines.
“We are calling on the Government to support essential fuel users with targeted rebates and a clear plan to safeguard supply while maintaining the movement of people and goods across the UK.”
