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UK petrol and diesel prices rise as Brent crude climbs
Brent is about $87 a barrel after moving from a near $70 post June framework deal level, and RAC estimates each $10 oil move adds roughly 7p a litre at the pump.
UK fuel prices in Britain have started rising again after falling following a June framework deal to end fighting tied to the US-Israel war with Iran, as renewed Middle East tensions have pushed up wholesale energy costs. BBC Business reports that when conflict began on 28 February, disrupted oil production and transportation drove a surge in fuel prices before prices dropped on deal optimism, and then climbed again as tensions resurfaced.
Crude oil is a key input for petrol and diesel, and higher wholesale costs flow through to pump prices with a lag of about a fortnight, according to BBC Business. Analysts cited by the outlet say a $10 increase in oil prices typically translates into roughly 7p a litre higher pump prices.
Brent crude, the benchmark for wholesale oil, was about $70 a barrel before the conflict, peaked above $120 during the fighting, fell back near $70 in early July after the framework deal, and has since risen to around $87 a barrel. BBC Business adds that the RAC reported petrol averaged 152.54p a litre and diesel averaged 167p a litre in its latest data, after a conflict peak of 159.53p a litre for petrol on 28 May and 191.54p a litre for diesel on 15 April.
RAC said the rise is likely to continue as the jump in Brent crude works through to retail prices, with BBC Business noting fuel retailers have denied accusations of price gouging. The UK regulator also said it had not seen evidence that retailers changed pricing strategies to take advantage of the crisis.
Latest closeWTI crude $79.00 ▼0.8%|Brent $84.94 ▼0.0%