Oil Refinery Attacks Drive Fuel Prices Up, Accelerating EV Cost Advantage
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Following the attack on the Kapotnya oil refinery in Russia on September 20, and amid growing tensions in the Middle East, oil prices have jumped to over $100 per barrel, a roughly 50% increase since June. This has driven diesel prices up 38% since February to £1.96 a litre, while petrol prices have risen 31% since February to £1.72 a litre. In contrast, driving an electric vehicle using an off-peak tariff costs 2.3p per mile, which is nine times cheaper than a diesel car.
From carbonbrief.org
Why it matters
The escalating conflict between Yemen’s Houthis and Saudi Arabia, combined with disruptions to Russia’s diesel supply, is causing sharp increases in fossil-fuel costs. These price surges are driving up the cost of transport and energy across the UK, while simultaneously making electric vehicles significantly more cost-effective for consumers.
From carbonbrief.org
Who's involved
- Middle EastGeopolitical region experiencing conflict and instability that drives energy shocks.
- OfgemUnited Kingdom government body involved in energy market regulation.
- Food and Drink FederationUK trade organization representing food and drink manufacturers.
- Bank of EnglandCentral bank of the United Kingdom that monitors inflation and cost-of-living pressures.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Food and Drink FederationSpeculative
Higher energy prices might increase the production costs for food and drink manufacturers.
- Bank of EnglandSpeculative
Energy price shocks could drive inflation, forcing the Bank of England to factor in higher cost-of-living pressures.
- OfgemSpeculative
Geopolitical risk might test the regulatory body's capacity to manage price caps under extreme market volatility.
- BenchmarkSpeculative
Geopolitical conflict and refinery attacks could cause sharp, immediate increases in wholesale energy prices.
Keep exploring
The entities involved
-
Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
Related events
- Geopolitical tensions are affecting oil market stability, driving up refined product costs and gas prices in New York.
- Fighting and sanctions risk are impacting oil supply and raising inflation worries globally.
- Geopolitical conflict in the Middle East is currently impacting global oil supply, a situation being monitored by the Reserve Bank of Australia.
- Iranian attacks disrupt oil flow through Hormuz, impacting global oil market stability.
- Global markets are affected by Middle East de-escalation, ongoing Ukraine energy attacks, and Donald Trump's waiver of Russia sanctions.