LONDON: Petrol and diesel prices have soared in the UK following the announcement that Russian petroleum products would be phased out of the country later this year. At the pumps of many companies, the price of diesel has gone up to 15 pence per liter in two days. Petrol also went up by up to ten pence. If international crude oil prices continue to rise, petrol and diesel prices in the UK could rise above പൗ 2 a liter in a week or two. There will be a similar increase for cooking gas and heating gas.
As diesel and petrol prices rise, so will the prices of all commodities in the market. Although the war is in Ukraine, its aftermath has spread far and wide around the world. The government has decided to ban Russian petrol and petroleum products completely in the UK by the end of 2022. The transition period will allow until the end of this year to find a replacement for the market and business-supply chains. Russian products make up 8% of the British petroleum market.
Britain and the European Union on Tuesday announced restrictions on Russian oil after the United States imposed a total ban on Russian petrol and petroleum products. The European Union (EU) has decided to cut Russian crude oil imports by two-thirds by the end of the year. With the ban on Russian oil, the price of crude oil in the international market came close to $ 140 per barrel.
Instead of Russian oil, Britain will buy oil from the United States, Saudi Arabia or other small petroleum producing countries. But it will cost a lot. Crude oil comes directly from Russia to Europe through pipelines. But petroleum arriving in containers from other foreign countries will cost a lot in the transport item itself. Add to this the fact that petroleum products have to pay a high price for each.
Russia warns of US, UK, EU decision to ban Russian oil
Russia is the third largest oil producer after the United States and Saudi Arabia. Russia exports about 50 million barrels of crude oil a day. Half of this goes to Europe and the UK. Stopping this would undermine Russia’s economic security. Although Russia is trying to resolve the crisis by lowering crude oil prices to countries including India, no one has responded favorably for fear of diplomatic pressure.
About 40 percent of the European Union’s crude oil consumption and 8 percent of Britain’s oil consumption depend on Russian oil. All the major powers in Europe, including Germany, France and Italy, will be trapped for survival when Russian oil runs out.
Energy regulator OffJem estimates that the UK’s gas bill will increase by an average of 700 700 to 1000 1,000 from this April. Ofjem also warns that when the price cap is reset in October, it could rise again to 3000 3,000.
The unpredictable war that followed the Kovid epidemic, which wreaked havoc on the entire region, is a daily reminder of the rhythm of British life.