Inspenet, October 15, 2023.
In the coming weeks and months, motorists in the United Kingdom (UK) could face an increase in petrol and diesel prices due to the conflict between Israel and Hamas. Since last week, there has been an increase in global oil prices due to the situation between both nations, which has raised concerns about possible effects on oil production in the Middle East.
Notably, the price of Brent crude oil has seen an increase of approximately $6 per barrel since the beginning of October, reaching $87.86. Some experts have raised concerns that the cost of oil could reach $100.
Last Monday, the Israeli government issued an order to Chevron to stop gas production in the Tamar field , located on the country’s coast, indicating that it would explore “alternative fuel sources” to meet its energy demands. In an interview with GB News, Paul Barker, who serves as editor-in-chief of carwow, noted: “There are several factors that affect the price of fuel, such as inflation, fuel taxes, VAT and profit margins, but the main one is the cost of crude oil.“.
The previously highest recorded price of Brent crude oil occurred in February 2022, when it reached approximately $120 per barrel, coinciding with Russia’s invasion of Ukraine.
The high values eventually led to a significant rise in fuel costs in the United Kingdom (UK), peaking in June and July, when petrol topped £1.90 per liter and diesel hit almost £2.
Implications of the new price of gasoline and diesel
In the UK, fuel prices were also heavily influenced by the actions of supermarkets and retailers who attempted to profit from the inflated prices drivers were forced to face.
Paul Barker added: ” Political uncertainty driving up fuel prices could lead consumers to again consider electric cars as the only major way to mitigate any future increases .”
For his part, Saul Kavonic, an energy expert, explained that global oil prices were rising due to the possibility of tensions spreading to other nearby oil-producing nations, such as Iran and Saudi Arabia.
Other analysts have predicted an immediate rise in oil market prices as a result of events in Israel and Palestine.
Although Israel and Palestine do not play a significant role in oil production, there are concerns that the conflict could create ripple effects throughout the region.
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