Pump Prices About To Hit New High Warns AA
The political uncertainty gripping many of the world's top oil producing nations is set to deliver a shock to UK drivers "within days".
That is according to the AA, which believes increases in the cost of oil as a result of the unrest in Libya will shortly be passed on by retailers at the petrol pump.
It has traditionally taken weeks for such oil price increases to reach petrol stations.
As it stands, the average price for a litre of unleaded is 128.9 pence, with diesel 134.3 pence.
But on the international markets, the price of Brent Crude oil is hovering at highs not seen for well over two years at almost $110 a barrel.
The oil price has risen steadily over the past two months as a result of the political turmoil in Tunisia, Yemen, then Egypt and now in Libya.
Should it reach a record $150 a barrel, as some experts claim could happen if the unrest spreads, a litre of unleaded would likely rise above 140p.
It is estimated that Libya's daily output of 1.6 million barrels has already been reduced at least by 20% because of the uncertainty there.
Two major foreign producers, Eni (E1NT.EX - news) and BASF (323600.TI - news) , have turned off the taps. Together they produce 350,000 barrels a day.
One of the largest tribes in Eastern Libya has threatened to cut off exports from the port of Banghazi unless the violence against pro-democracy protesters stops.
Another tribe, based south of the capital Tripoli, has also turned against Colonel Gadaffi's regime.
Saudi Arabia has said that it could produce an extra 4 million barrels a day to make up any lost capacity and help keep prices stable.
But the biggest fear is that the turmoil could spread across the Middle East and North Africa, which together produce a third of the world's oil.
RMI Petrol, which represents retailers, has yet to respond to the AA's price rise claims.
The two organisations clashed over petrol prices earlier this month after the AA accused fuel providers of failing to pass on falling wholesale petrol costs to motorists.
However, both have agreed that freezing April's planned fuel duty increase will serve the best interests of the UK economy.
The political uncertainty gripping many of the world's top oil producing nations is set to deliver a shock to UK drivers "within days".
That is according to the AA, which believes increases in the cost of oil as a result of the unrest in Libya will shortly be passed on by retailers at the petrol pump.
It has traditionally taken weeks for such oil price increases to reach petrol stations.
As it stands, the average price for a litre of unleaded is 128.9 pence, with diesel 134.3 pence.
But on the international markets, the price of Brent Crude oil is hovering at highs not seen for well over two years at almost $110 a barrel.
The oil price has risen steadily over the past two months as a result of the political turmoil in Tunisia, Yemen, then Egypt and now in Libya.
Should it reach a record $150 a barrel, as some experts claim could happen if the unrest spreads, a litre of unleaded would likely rise above 140p.
It is estimated that Libya's daily output of 1.6 million barrels has already been reduced at least by 20% because of the uncertainty there.
Two major foreign producers, Eni (E1NT.EX - news) and BASF (323600.TI - news) , have turned off the taps. Together they produce 350,000 barrels a day.
One of the largest tribes in Eastern Libya has threatened to cut off exports from the port of Banghazi unless the violence against pro-democracy protesters stops.
Another tribe, based south of the capital Tripoli, has also turned against Colonel Gadaffi's regime.
Saudi Arabia has said that it could produce an extra 4 million barrels a day to make up any lost capacity and help keep prices stable.
But the biggest fear is that the turmoil could spread across the Middle East and North Africa, which together produce a third of the world's oil.
RMI Petrol, which represents retailers, has yet to respond to the AA's price rise claims.
The two organisations clashed over petrol prices earlier this month after the AA accused fuel providers of failing to pass on falling wholesale petrol costs to motorists.
However, both have agreed that freezing April's planned fuel duty increase will serve the best interests of the UK economy.
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