#fuel-prices

#fuel-prices

On average, fuel prices are up almost a dollar per gallon, or 25 percent, according to AAA. For a nation as addicted to the automotive as we are, that's bad news. Except, of course, for electric vehicles.

According to a survey of over 13,000 members conducted by the AA, an estimated 21.7 million journeys are expected across the UK on Thursday, making this one of the busiest Easters in recent years.

The price of petrol in France has jumped in recent weeks, prompting protests and demands for government help. French Oil giant TotalEnergies announced in mid-March that it would cap petrol prices at its petrol stations at €1.99 a litre, and €2.09 per litre for diesel, although only until the end of March.

The French government has temporarily authorised the sale of diesel fuel with lower cold-weather resistance to prevent shortages amid rising prices at the pump.

"The waiver ensures a robustly available supply of domestic fuel, providing Americans further relief at the pumps, and reducing our reliance on foreign oil."

The idea that this is a temporary crisis, and that the economic effects will fade away once the bombing stops, is unfortunately no longer relevant. This situation amounts to a new oil shock. And if this energy shock persists beyond a few weeks, the crisis could spread more widely throughout the economy and, in essence, take on a more systemic nature.

The Brent Oil Index places the global price of a barrel of oil at $110 (€95), an increase of 57pc compared to before the joint US-Israeli strikes against Iran began.

Households, especially those that rely on their cars, are increasingly burdened as a result of the conflict in the Gulf. Drivers deserve—and should expect—to be treated fairly, particularly as pump prices continue to climb.

The longer this conflict goes on, the more effect it will have on the cost of oil. Any time Brent Crude passes $100 per barrel raises concern across the markets, for the haulage industry and drivers. There will be gradual increases in pump prices, but this shouldn't happen overnight, as fuel has been purchased at previous prices.

The price of oil increased after Iran warned vessels not to cross the Strait of Hormuz, an essential waterway in the south of the country where approximately 20 per cent of the world's oil and gas is shipped.