Tensions in the Persian Gulf could result in prices at UK fuel pumps rising further, motorists have been warned.
The Strait of Hormuz, where a UK-registered oil tanker was seized by Iranian authorities on Friday, links the Middle East’s crude oil producers with key markets around the world.
Between one-fifth and one-sixth of the world’s oil moves through the strait – around 17 million barrels per day, as well as around a third of the world’s gas supply.
READ MORE: British tanker Stena Impero 'seized by Iran'
Oil and gas prices will be affected if tensions in the area continue, according to a leading authority on British shipping.
Bob Sanguinetti, from the UK Chamber of Shipping, said there is “no alternative route in and out of the Gulf”.
He told the BBC: “If this is to endure then clearly it’s going to impact on trade routes, trade patterns and ultimately the price of those goods going through the Strait because they are going to have to be sourced from elsewhere.”
The situation is “bad news all round for drivers” who are already facing the highest July petrol prices since 2014, said the AA’s Luke Bosdet.
Mr Bosdet, the organisation’s spokesman on fuel prices, told PA: “I think what this is likely to do is to make sure that there is no relief for the holiday driver from petrol prices which are at their highest for a July over the past five years.
“Our big fear is that the cost of fuel may get worse if the tensions continue.”
He added that drivers are also paying the price for a weak pound, as oil is traded in dollars.
READ MORE: Government ‘deeply concerned’ by seizure of oil tanker in Persian Gulf
The AA said oil prices have gone up by around six dollars a barrel in the past month and that petrol across the country averaged 128.35p a litre and diesel was around 131.38p at the beginning of the week.
Mr Bosdet said: “A weaker pound means higher prices at the pump. Drivers are being squeezed in this vice of higher oil prices and a weaker pound.”
Why are you making commenting on The Herald only available to subscribers?
It should have been a safe space for informed debate, somewhere for readers to discuss issues around the biggest stories of the day, but all too often the below the line comments on most websites have become bogged down by off-topic discussions and abuse.
heraldscotland.com is tackling this problem by allowing only subscribers to comment.
We are doing this to improve the experience for our loyal readers and we believe it will reduce the ability of trolls and troublemakers, who occasionally find their way onto our site, to abuse our journalists and readers. We also hope it will help the comments section fulfil its promise as a part of Scotland's conversation with itself.
We are lucky at The Herald. We are read by an informed, educated readership who can add their knowledge and insights to our stories.
That is invaluable.
We are making the subscriber-only change to support our valued readers, who tell us they don't want the site cluttered up with irrelevant comments, untruths and abuse.
In the past, the journalist’s job was to collect and distribute information to the audience. Technology means that readers can shape a discussion. We look forward to hearing from you on heraldscotland.com
Comments & Moderation
Readers’ comments: You are personally liable for the content of any comments you upload to this website, so please act responsibly. We do not pre-moderate or monitor readers’ comments appearing on our websites, but we do post-moderate in response to complaints we receive or otherwise when a potential problem comes to our attention. You can make a complaint by using the ‘report this post’ link . We may then apply our discretion under the user terms to amend or delete comments.
Post moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours.
Read the rules hereLast Updated:
Report this comment Cancel