The rising cost of petrol is putting pressure on consumers and businesses alike.
Earlier this week, figures were announced by the RAC to show the cost of filling the average family car now exceeds £100 for the first time.
Sky News reported that the situation will likely worsen the cost of living crisis for motorists and for customers, as businesses will at some point look to pass on their rising costs.
The report explained that prices were high partly because when major economies reopened after the pandemic, oil prices gradually rose on stronger demand and that largely remained the case for the market right up until February this year when major oil producer, Russia, invaded Ukraine.
“The potential implications, coupled with the impact of Western sanctions, forced Brent crude oil costs well above $100 a barrel to a peak around $130.
As time has progressed, lower volumes of Russian oil and oil-based products on the market have squeezed supplies while higher costs are also reflected in things like refining margins – adding to end-point prices.”
Sky’s report explained that the EU’s Russian oil embargo has placed more pressure on prices as it intensifies worries about an international scramble for supplies. This has coincided with China’s production output getting back on track after the pandemic.
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