As a result of Hurricane Harvey, British motorists will observe a sharp increase in the price of petrol within days.
The immense storm that has significantly affected Texas over the recent days has
The massive storm that has battered Texas over the past few days has sparked a 4p-per-litre increase in the prices of wholesale fuel.
The Petrol Retailers’ Association has warned that very soon, that increase in world prices will be passed on to British drivers.
Chairman of the PRA, Brian Madderson, announced that the impact of Harvey ravaging the Texas coast would be observed by motorists in the United Kingdom as the summer season ends.
The RAC stated that the price petrol was on track to overtake diesel prices for the first time in a year with average costs likely increasing to above 121p per litre – its highest level since 2014.
A spokesperson from the RAC, Pete Williams, announced: “The price of unleaded petrol will leapfrog diesel early next week, rising by up to 4p per litre as the impact of Storm Harvey and the shut-down of large refineries in the Gulf Coast drives up US demand for petrol imports.”
Hurricane Harvey has left a quarter of the refineries in the US out of commission which resulted in a loss of over four billion barrels a day. On the other hand, production of crude oil in the Gulf of Mexico is down by 13.5%.
As a result, announced the RAC, other producers of petrol were directing stocks to the United Stated – leaving the United Kingdom and other countries facing possible shortages and price increases.
“We could see unleaded rise in the coming days to around 121p a litre, with diesel likely to stay stable around 118.5p,” added Williams.
“This will be the first time unleaded has been higher than diesel since June 2016 and we expect this to be the case for some time to come – or at least until the US oil industry is able to get refineries back into operation.”
Hurricane Harvey has resulted in an increase in fuel prices in the US with the average price of 10 cents from a week ago to $2.45 per gallon.