Pump prices have reached new highs, described as "Iran war highs," with diesel costing 191.68p and petrol reaching 169.68p, according to the RAC. These figures represent the highest levels since August 2022, a period shortly after Russia's full-scale invasion of Ukraine.
The surge in fuel costs is attributed to rising oil prices, driven by concerns over potential disruptions to Saudi Arabian oil exports. Fears have surfaced that the kingdom could deplete its exportable stocks within days if a damaged pipeline is not repaired.
Satellite imagery indicates significant damage to a 745-mile east-west oil pipeline following drone attacks launched from Iraq on Thursday. A pumping station along the pipeline appeared extensively charred. This pipeline is crucial for Saudi Arabia, the world's largest crude oil exporter, as it allows for the rerouting of approximately four million barrels of oil daily to the port of Yanbu on the Red Sea, bypassing the Strait of Hormuz.
Following the attack, Riyadh has shut down the key pipeline. This closure threatens the loss of an estimated 4% of global oil supplies, contributing to the upward pressure on crude prices. Industry sources suggest that if the pipeline remains inoperable, existing stocks at Yanbu could sustain exports for only an estimated five to seven days.
The global energy market is already experiencing strain, partly due to the Iran war, which previously led to the closure of the Strait of Hormuz, a vital shipping route through which about one-fifth of the world's oil and gas typically flows.
RAC head of policy, Simon Williams, noted that the current prices mean filling a 55-litre family car with unleaded petrol now costs over £93, and diesel exceeds £105. He added that both fuel types are at prices not seen since early August 2022, with an increase of 8p per litre since the beginning of September. Williams also commented that with oil prices exceeding $100 a barrel, there is no immediate end in sight for elevated pump prices, impacting drivers reliant on their vehicles. He indicated that the average price of diesel might approach its record high of 199.05p set in June 2022, though petrol prices remain further from their all-time record of 191.53p recorded in July 2022.
In the context of escalating tensions, former President Donald Trump reportedly advised Ukrainian President Volodymyr Zelensky to cease attacks on Russian diesel fuel production. This statement highlights the international concern over the impact of the conflict on global energy markets.