Petrol price to hit £3 a liter in nightmare for motorists as West embargoes Russia | Personal Finance | Finance

[ad_1]

Even if the West does not impose sanctions on Russian oil, prices are set to jump higher because buyers and refiners are in a “self-sanctioning” mode, not daring to touch Russian crude and looking for alternative supplies, said Tsvetana Paraskova, writing for industry website oilprice.com.

Last month, JTD Energy Services director John Driscoll said oil could hit $150 due to underinvestment in capital exploration. “We’re running low on physical oil, we’re running short of supply,” he said.

That was before the full brutal scale of Russia’s Ukrainian war became clear.

In 1973, when OPEC placed an oil embargo on Western nations that had supported Israel during the Yom Kippur War, oil prices jumped 300 percent triggering a stock market crash, soaring inflation and high unemployment.

British motorists could face similar nightmare today. As well as higher prices, they could even face rationing at the pumps.

Home energy prices are rocketing, too. From April 1, the energy price cap will jump by £693 to £1,971 a year, while it is expected to hit £3,000 from October.

[ad_2]