Motorists are being warned to expect further pressure at the pumps as disruption to global oil supplies pushes wholesale fuel costs higher.
The Petrol Retailers Association (PRA), which represents independent forecourt operators, says escalating conflict in the Middle East is putting significant pressure on international fuel markets.
Oil supplies have been affected by disruption around the Strait of Hormuz, while attacks involving Yemen’s Houthi movement have also threatened alternative Saudi export routes towards the Red Sea. Recent disruption to Saudi oil infrastructure has added to concerns over supplies.
Brent crude climbed back above $100 a barrel last week as the conflict intensified, reaching $107.63 at Thursday’s close. Prices have remained elevated this week, with Brent trading at around $107 a barrel on Wednesday.
The PRA warned that while filling station operators were conscious of the cost-of-living pressures facing motorists, sustained increases in wholesale costs could not simply be absorbed by retailers.
It said higher wholesale prices would therefore inevitably feed through to prices paid by drivers at forecourts.
PRA executive director Gordon Balmer said: “Retailers understand the pressures motorists are facing, but they cannot absorb sustained increases in wholesale fuel costs.
“With prices continuing to rise, we are urging the Chancellor to abandon the planned fuel duty increase and avoid adding further pressure at the pump.”
The organisation is calling on Chancellor John Healey to abandon the fuel duty increase due to take effect at the beginning of 2027, arguing that the wider inflationary impact of the Middle East conflict is already increasing costs for families and businesses.
Mr Healey has been Chancellor of the Exchequer since July and is due to deliver his first Budget on Wednesday, October 28.
The PRA said cancelling the planned duty increase would help limit further pressure on motorists and the wider economy.
It is also encouraging motorists to compare local forecourt prices to find the cheapest fuel available in their area.
