The UK's motoring group RAC has expressed concern over the potential rise in petrol and diesel prices at the pump, citing the ongoing conflict in Iran as a major factor. According to the RAC, if the situation in Iran does not improve, fuel costs could continue to increase, affecting motorists and businesses across the country.
In a statement, RAC spokesperson Simon Williams warned that 'any disruption to the global oil supply chain could lead to a sharp increase in fuel prices, with motorists facing higher costs at the pump.' The organisation has called for a resolution to the conflict, highlighting the need for stability in the global oil market.
The RAC's concerns come as the UK's fuel prices have already seen significant increases in recent months, with petrol prices rising by 15.6% and diesel prices by 18.1% since the start of 2023, according to data from the Petrol Prices website. The prices have also had an impact on the FTSE 100, with the UK's leading stock market index experiencing a decline in recent weeks.
For UK households and businesses, the potential rise in fuel prices could have significant economic implications, particularly for those reliant on transport for their livelihoods. In addition, the impact on investors in the FTSE 100 could also be significant, with the index experiencing volatility in recent weeks.
The Bank of England has been monitoring the situation closely, with Governor Andrew Bailey stating that the bank is 'keeping a close eye on developments in the oil market.' However, the bank has so far taken no action to mitigate the impact of rising fuel prices on the UK economy.
As a result, UK savers, mortgage holders, and investors are advised to seek advice from a qualified financial adviser to mitigate any potential risks to their investments.