Petrol prices hit new high of 173p a liter as EU bans imports of Russian oil Business News

Average petrol prices hit a new high of 173.02 pa liter after an EU ban on most Russian oil imports.

It costs £95.16 to fill an average family car on Tuesday, the RAC said.

Fuel prices have hit record highs every few days for the past few weeks, adding pressure on struggling households who are also seeing the costs of food, gas and electricity rise sharply.

Gasoline and diesel rose on rising oil prices after supplies were cut off by Russia’s invasion of Ukraine and Western sanctions were imposed in response. Meanwhile, demand increased as the world emerged from the Covid pandemic.

European Union leaders on Monday night decided to impose a partial oil embargo on Russia, following a summit that saw a long-delayed sanctions package blocked by Hungary.

The watered-down embargo only covers Russian oil delivered by sea, allowing a temporary exemption for imports delivered by pipeline.

That was enough to lift oil prices Tuesday morning, with international benchmark Brent crude trading at $123.50 a barrel, up 1.5%. West Texas Intermediate, a US oil blend, rose 2.7% to £118.20.

Analysts have warned motorists could face further fuel price hikes if the EU agrees to a stricter oil embargo in the future.

Callum Macpherson, head of commodities at Investec, said oil markets were surprised to hear the EU member said he had reached an overnight deal.

“This deal is clearly watered down from what was originally offered several weeks ago,” Mr Macpherson said.

“Perhaps the EU, knowing it would face credibility issues if it did nothing, decided it was best to get a deal and then can work to implement a longer ban. strong over time. We are now waiting to hear more details about additional delays and penalties.

Prices at the pump are also being pushed up by a lack of ability to refine crude oil into its various components such as gasoline and diesel.