Middle East oil crisis affecting UK motorists

Both motorists and independent petrol stations are likely to continue suffering the effects of an unstable political environment in the Middle East and doubts about the future of the Coryton refinery, according to the chairman of RMI Petrol.

Brian Madderson, whose group represents almost 6,000 independent retailers across the UK, says that while owners of larger cars are being forced to shell out more than £100 a time to fill up their cars, residents in rural areas are facing even higher bills and even more uncertainty.

He added that while the future of the Coryton refinery remained undecided, the current situation in the Middle East would have more of a long-term impact on independent petrol retailers. An EU embargo on oil imports from Iran will come into effect in the summer, pushing up the oil price once again – subsequently leading to rising petrol prices.

As independent garages are priced out of the market by the big oil companies, many are going out of business; especially in rural areas of the UK where prices are now being pushed even higher thanks to a lack of competition in the area. According to research by motoring organisation the AA, over 70% of its members have adapted their behaviour since petrol prices rocketed, cutting down on the amount that they drive.

Even though oil prices have fallen slightly in recent weeks, for the first time since the spike caused by the crisis in Libya early in 2011, the RAC believes many UK households are living in “fuel poverty”; spending over 10% of their income on petrol and motoring costs rather than on other essential items.