Drivers ‘may be feeling effects of oil price rise’

Drivers are already feeling the effects of climbing oil prices, with growing tensions between the US and Iran set to push them higher, according to the RAC.

“Prices at the pump have already increased by about a penny a litre,” said Simon Williams, who tracks fuel prices for the company.

Petrol is currently £1.27 per litre, with diesel costing £1.32, he said.

But Brian Madderson, the chairman of the Petrol Retailers Association, said: “Prices were due to rise anyway.”

He warned against quickly trying to find a correlation between rising geopolitical tensions in the Middle East and the recent fuel price increase.

However, the RAC’s Mr Williams said price increases may become more pronounced if tensions grow between the US and Iran.

“It all depends on what happens between Tehran and Washington,” he told the Today programme.

“If things get more fraught, then the oil traders will get more concerned and we could see the price rise.”

Wider factors

The price of oil has spiked by as much as 6.7% since the US killed Iranian military commander Qasem Soleimani in a drone strike ordered by Donald Trump.

https://www.bbc.co.uk/news/business-51017848