A combination of geopolitical events, including the war in Ukraine, have conspired to force the price of petrol at the pump to levels never before seen. In some locations, the price per litre has been driven to almost £2 per litre – prompting a fuel tax cut in the chancellor’s Spring Statement.
What’s causing the increase?
It might seem obvious that the war in Ukraine has been a major factor in the upsurge. Russia is an exporter of oil, and thus any sanctions placed on the country will restrict the global supply. Thus, prices have been pushed up.
But the wholesale price of oil is just one factor at play. In fact, crude oil prices were higher in 2015 than they are today. So to what else can we attribute this development?
Well, there are also logistical problems to contend with in getting the oil from where it’s been extracted to where it’s being sold to the end consumer. The oil industry had to deal with an almost unprecedented slump in demand following Covid-19, and recovering the supply chain to where it was before isn’t straightforward.
Recently, fuel prices have shown signs of stabilising, largely in response to signs of a more conciliatory tone from Russia, and renewed negotiations. Whether this actually continues remains to be seen.
How to deal with higher fuel prices
For many in the UK, the cost of fuel is a significant determiner of our overall spending power, and quality of life in general. So how exactly can we cope with the pain?
Drive less
Many motorists in the UK are cutting down on non-essential travel. If you’re within walking or cycling distance of your workplace, then making the switch might be viable.
Shop around
If you really have to fill up, then now is an excellent time to shop around. With fuel prices going up so quickly, you’re sure to find considerable variation between different stations – partly because some stations can’t raise their prices fast enough, and partly because some stations have gotten greedy.
As well as shopping around for the fuel itself, you might also look to lower the costs of motoring elsewhere. GAP insurance can be purchased inexpensively from online insurers.
Drive Efficiently
There exists a myriad of techniques designed to improve your driving efficiency. These all tend to revolve around anticipating where you’re likely to stop, and driving as smoothly as possible. Braking wastes energy – unless you’re driving an electric vehicle with regenerative braking.
Maintain the Vehicle
Taking your car in for a service regularly will ensure that it’s kept efficient in the long-term. But you can also maintain your car yourself by taking simple steps like regularly re-inflating the tyres, and replacing them when the tread depth falls below a certain threshold.
