UK diesel prices rose an average of more than 2p in a day as Russia’s invasion of Ukraine continues to impact global oil costs.
Fuel rose to a record £1.76 a liter on Tuesday, up from almost £1.74 on Monday.
Petrol prices, which have also risen to record highs, rose from around £1.64 to almost £1.65 a litre.
The ongoing price hike comes amid warnings of potential global oil supply problems.
The International Energy Agency (IEA) said high commodity prices and sanctions against Russia over its invasion of Ukraine “threatening to trigger a global oil supply shock”.
It is estimated that three million barrels a day of Russian oil could be taken off the world market due to international sanctions.
- How has the conflict in Ukraine affected gas prices?
The agency warned that only Saudi Arabia and the United Arab Emirates have enough spare production capacity to fill the shortage of Russian production, which it says is the world’s largest oil exporter.
For now, Russia is continuing to export oil on deals and deals struck before Moscow sent its troops to Ukraine, the IEA said. However, new business has all but dried up as many Western countries look to alternative fuels.
Some countries, like the US and Canada, have banned Russian oil imports, but by contrast, the EU, which is much more reliant on Russian energy, has balked at a ban.
Meanwhile, Britain has announced it will phase out imports of Russian oil by the end of the year in response to Russia’s actions.
Prime Minister Boris Johnson has traveled to Saudi Arabia and the United Arab Emirates to discuss energy security and other issues.
The IEA said the world is “faced with what may be the biggest supply crisis in decades” with global energy markets “at a crossroads”.
It added that the “impact of a possible loss of Russian oil exports on world markets” could not be underestimated.
“Russia’s invasion of Ukraine has put energy security back at the forefront of the political agenda as commodity prices soar to new heights. While it is still too early to know how events will develop, the crisis may lead to lasting changes in energy markets.
The price of Brent crude — the global benchmark for prices — hovered around $100 a barrel on Wednesday, after previously hitting record highs of more than $130 a barrel, just after western countries beat Russia were subject to sanctions.
The rapid rise in oil prices has pushed up pump prices in the UK. The UK imports only about 6% of Russia’s oil but has been affected by global price shifts driven by supply and demand.
RAC fuel spokesman Simon Williams said fuel prices have risen at an unprecedented pace, with petrol up 13p and diesel up almost 21p since the start of the month.
He said a full tank of unleaded for a family car now costs almost £91 on average.
British automakers have said fuel prices are likely to fall as global oil prices stabilise.
However, there is concern that some retailers may be reluctant to lower their prices for fear of being caught if wholesale costs spike again.
“The big question is how keen retailers will be to pass those savings on to the dispensers, as they will no doubt be keenly conscious to guard against any further increases that may suddenly materialize,” Mr Williams said.
“Riders desperately need a break from these relentless daily climbs.”
The RAC has called on the chancellor to lower the fuel tax, or VAT, in its forthcoming spring statement.
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