Iran war: Further fuel price hikes ahead but supplies ‘stable’, says Petrol Retailers Association | Money News

There is no end in sight to rising fuel prices but supplies are “stable”, according to an industry body.

The Petrol Retailers Association, which represents the bulk of UK operators, told Sky News that price increases facing forecourts rose sharply again last week and would continue to feed through to the pumps.

It pointed to data from S&P Global’s Platts division that showed diesel continuing to bear the brunt of wholesale hikes, rising by $258 a tonne over the course of the week on average.

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The figure for petrol was up by $2.

Diesel prices are more exposed to upwards pressure because the country imports the vast majority of what it uses while most petrol is refined domestically.

There is increased competition for diesel globally due to the squeeze applied to supply from the Middle East war.

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The PRA’s executive director, Gordon Balmer, said: “There is no suggestion of shortages. Supplies are stable”.

But he added: “(Pump) prices will continue to rise”, as retailers buy their fuel stocks over the coming weeks.

Data is expected later on where average pump costs are.

The RAC motoring group said last Friday that petrol had jumped by 12p a litre since hostilities began at the end of February.

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The figure for diesel was double that.

The RAC forecast that the average price of a litre of unleaded was likely to reach 150p, and diesel possibly 180p, by Easter.

Mr Balmer thought that averages around those levels could been seen earlier than that as fuel operators grapple surging wholesale costs and could not sell at a loss.

The government has signalled it is watching forecourt margins carefully while exploring ways to help mitigate the fresh energy-led price surge threatening consumers and businesses.

A barrel of Brent crude is currently 60% up in the month to date. The figure for natural gas is over 100%.

Ministers are being urged to help drivers, and households, by easing the tax burden placed on fuel sales and energy bills.

On the fuel front, tax typically constitutes around half the cost of filling up.

As things stand, a 5p a litre fuel duty cut by the last government will start to be unwound from September.

While confirming its plans last night for a cost-of-living focused meeting of the government’s COBR committee, a spokesperson said: “As the chancellor set out to Parliament, the extent of the economic impact of the situation in the Middle East will depend on its severity and its duration.

“The government will be responsive to an uncertain world, and always act responsibly in the national interest.

The government is already working to prioritise vulnerable households and businesses, act on the cost of living and inflation, underpinned by the stability the government has restored to the public finances.”