BRITS are being urged to fill up their tanks as petrol prices could rocket in a matter of days.
Fears are mounting that Iran may retaliate to US strikes on its nuclear sites by closing the world biggest shipping facility of oil.
The Strait of Hormuz, which lies between Oman and Iran, sees around a fifth of the world’s global oil supply pass through.
Iran‘s parliament voted on Sunday, June 22 to close the strait but it requires approval from the country’s Supreme National Security Council.
However, threats of the route being blocked led oil prices to surge to their highest price in six months when markets opened today.
Brent crude, the international benchmark for oil prices, hit $81.40 (£60.41) a barrel when the market opened on Monday. But it later dropped to trade 0.3% lower on the day at $76.76 (£56.97) by early afternoon in London.
When the price of crude oil rises, the amount punters pay for petrol also tends to increase.
Fuel prices had been edging down, but prices have slightly increased since conflict between Israel and Iran intensified earlier this month.
Susannah Streeter, head of money and markets, warned fuel prices could be “severely disrupted if the conflict is prolonged”.
She added: “If the Strait is closed there are fears it will lead to an oil price shock.”
Ben Perks, managing director at Orchard Financial Advisers also warned the “price of petrol will almost certainly rise”.
He explained: “The rise in this overhead can lead to price rises on everything that’s transported.
“It’s a waiting game to see how markets will react, but as things in the Middle East heat up, it’s likely to cause volatility.”
It is not the first time that punters have been warned of price hikes at the pump due to a global conflict.
When Russia – one of the world’s biggest producers of oil – invaded Ukraine fuel prices also shot up.
But Simon Williams, RAC head of policy said the rise in oil costs might not be enough to “cause a major hike at the pumps”.
“As retailer margins have been high for some time, the oil price rise has squeezed these to fairer levels for drivers.
He added: “If, however, retailers are set on maintaining margins of around 12p a litre, we may well see the average price of fuel go up further.”
SHOULD YOU FILL YOUR TANK NOW?
The price of petrol is currently at 132.06 per litre, but experts fear that this could rise further if the Strait closes.
In light of the news, Tony Redondo, founder at Cosmos Currency Exchange said it would be “wise for consumers to fill up their tanks now”.
He explained: “The effect at the petrol pumps of even a partial closure of the Strait of Hormuz would be immediate and significant”.
Tony said the closure could spike Brent crude, up 15% to over $80/barrel, may push prices to 152p/litre very quickly.
He also warned a full closure could see oil hit $100-$150, driving petrol up towards £2/litre.
He said: “That’s why now could be a smart time to fill up your tank before any further hikes come into effect.”
However, it is important to only fill up your tank if you need to and if you can afford it.
Markets also fluctuate on a regular basis, so if oil prices spike it does not mean it won’t edge down at a later date.
How else can I cut fuel costs?
ONE way to save is by signing up for major supermarket loyalty schemes, which can give you discounts of up to 5p per litre.
Esso has partnered with Nectar, allowing you to get 5p off per litre when you redeem 300 Nectar points.
BP drivers can use the BPme rewards card to earn one point for every £1 spent in-store or on a litre of regular fuel, with £1 off fuel or shopping for every 200 points.
Loyalty schemes from Texaco, Shell, Sainsbury’s, and Tesco also offer savings on fuel and shopping bills.
You can further reduce fuel costs by driving more efficiently by:
- Accelerating gradually without over-revving.
- Driving in the highest gear possible.
- Allowing your car to slow down naturally instead of braking unnecessarily.
Don’t forget about clutter in your car.
Extra weight from tools, toys, or rubbish can increase fuel consumption by as much as 12%.
Clearing out unnecessary items can make a noticeable difference to your costs.
How can I find the cheapest petrol stations?
Websites like Petrolprices.com can help you find the cheapest petrol stations near you.
The site covers over 3,800 petrol stations using CMA data, providing daily price updates for unleaded, diesel, super unleaded, and premium diesel.
To use it, simply register, enter your postcode, choose how far you’re willing to travel (up to 20 miles), and select your fuel type.
Keep in mind, you can only search the website five times a day, but downloading the app gives you unlimited searches.
Your savings will depend on how often you fill up, which varies based on how frequently you use your car.
Prices also differ by location and change week to week, so it’s always worth checking to make sure you’re getting the best deal.
Petrolprices.com isn’t the only option for comparing fuel costs.
Fleet News and Allstar also offer tools to check petrol prices across different counties, letting you see how your area compares to the UK average.
Plus, Confused.com has a petrol price checker for registered users, allowing them to find fuel prices within a 5, 10, or 25-mile radius.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
