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A petrol station with no unleaded fuel in Southend, England. (Image: Getty)
Labour has been urged Britain "needs help now" to tackle soaring fuel prices sparked by the Iran war. Shortages on forecourts have already been reported in Northern Ireland as the US-Israeli war with the Islamic Republic has hit global supplies and sent crude oil prices spiralling.
Rocketing fuel prices have been sparked by Iran shutting down the vital Strait of Hormuz, a shipping route which carries 20% of the world's oil and gas supplies. Diesel prices have reached their most expensive level since December 2022, with the average price of a litre of the fuel at UK forecourts on Monday hitting 181.2p according to RAC analysis. That represents a 27% increase from 142.4p on February 28, the day the war in the Middle East began.
Average petrol prices have reached 152.0p per litre, a rise of 14% from 132.8p over the same period. In Northern Ireland there were sporadic reports of several pump closures on forecourts and in Southend, Essex, a Tesco petrol station was pictured having run out of unleaded on Monday.
Petrol prices have rocketed since the Iran war began on February 28 (Image: Getty)
Chancellor Rachel Reeves faces growing pressure to ditch the planned increase in fuel duty due to start in September as the four year reduction on the levy ends.
But speaking to the Daily Express Edmund King, the president of the AA, urged Labour to act sooner to avert a disaster for industry and the consumer. He said: "Government can consider what they do with fuel duty in September but frankly that is five months away and arguably industry needs help now.
"With higher pump prices, the Government has been gaining more in VAT, so there is some ‘free’ money in the system that could be used to help drivers out.
"It is at times like this that the reality of the importance of road transport hits us. Roads are essential for most freight and passenger journeys.
"Deliveries to the shops, the service economy such as plumbers, and most journeys in rural areas just cannot be made by public transport. The extra hike in diesel prices disproportionally hits businesses, deliveries, the service industry and the self-employed.
"The government must be concerned about sky-high diesel prices as it is these costs that fuel inflation. One reason for the extra diesel cost is because the UK refines most petrol in this country whereas diesel tends to be refined elsewhere which adds to costs."
Ireland has slashed duty by 20% on a litre of diesel and 15% for petrol until the end of May. Down Under the states of Victoria and Tasmania have cut fuel duty in half and offered public transport for free. Spain and Poland have also cut VAT at the pump, with Madrid chopping from 21% to 10%, and Warsaw going from 23% to 8% to cushion the blow on consumers.
In Germany, where diesel prices have rocketed 40%, the authorities have capped petrol stations to a maximum of one price rise per day.
Fuel shortage fears have hit cricket fans in Pakistan for six as the authorities ordered spectators to watch the Pakistan Super League, which runs from March 26 to May 3, from home. The number of venues hosting matches has also been slashed from six to two.
Meanwhile, American President Donald Trump raged about war with Iran last night, threatening that if the Strait of Hormuz was not "Open for Business" the United States would be "blowing up and completely obliterating" Iranian oil and energy infrastructure.
Mark Waddington, CEO of Channoil Energy, an international oil and energy consultancy firm, based in the UK, said: "This feels like Donald Trump's Suez moment, and he's not learning the lessons of history.
"When Britain and France tried and failed to commandeer the Suez Canal in the 1950s, the Egyptians just scuttled ships in there and blocked it, and stopped everyone from using it.
"Historians often write about this as the end of Britain's power on the international stage, and the feeling in the industry is the same is going to happen with Trump here with Iran.
"Maybe he's realising why all of his predecessors did not pick a fight with Iran?."
Mr Waddington noted that the longer the conflict in the Middle East continued the worse the effect could be for the British public.
The war with Iran has been raging for more than a month now (Image: Getty)
He added: "If jet fuel prices spike even higher and the airlines have to pass that on, then fewer people will fly for holidays, so that will slow down demand.
"Some people will still have to get somewhere in their car, whether it's £1.30 a litre or £3 a litre, but if it comes to that a lot of people will think twice about doing things for fun at the weekend.
"There's a lot of talk about 20% of the world's oil production going through the Straits of Hormuz, well there are ways around that, so it's more like 10%, but what's more worrying is there are also some really important big oil refineries in that area that supply products to places like Europe. In the short term, Europe has been able to find supply from other parts of the world, but in the long run, if that stays blocked, then there will be trouble ahead."
A spokesman for the oil and gas industry body, Fuels Industry UK, said companies were monitoring the fuel supply situation. He said: "Supply remains stable in the UK and our members are working hard to ensure that remains the case.
"We're aware of reports circulating about fuel availability at a small number of forecourts in Northern Ireland. Supply is flowing normally and there is no need for any change in usual buying habits in Northern Ireland."
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David Boot, UK Public Affairs and Policy Director at the Road Haulage Association, said: “Fuel price increases are a huge challenge for the haulage, coach and van sectors who are key economic enablers and typically operate on thin margins. Some operators are also concerned about local availability of fuel and delivery timelines.
"We’re calling on the Government to back essential fuel users with a targeted rebate and have a clear plan to protect supplies to keep people and goods moving across the UK.”
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