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Highlights
- UK’s petrol prices may reach record highs, according to RAC
- Petrol is currently priced just 6 pence below the record high of 142.48 pence per litre
Petrol prices in the UK may reach their previous all-time high, which was last seen in April 2012, according to UK’s motoring body RAC.
Petrol prices are currently just 6 pence below the record high of 142.48 pence per litre. Petrol, as well as diesel prices have already reached levels, which was last seen in 2013.
The RAC also stated that a full tank of petrol is expensive by £12 in September 2021, compared to the previous year.
The recent spike in oil prices has weighed on UK’s petrol prices. Crude oil touched a multi-year high on Tuesday. Also, crude oil prices have increased by around 10 per cent in the last month.
Brent crude oil December futures were trading at US$ 82.91 today, up by 0.29 per cent at 08:35 AM BST.
The jump in oil prices has been attributed to a rise in global demand due to easing of restrictions and other factors amidst the tight supply of oil.
The RAC also stated that the rise in fuel prices was not related to a nationwide fuel shortage crisis.
The news comes just as the ongoing petrol supply crisis is seen to be somewhat easing. The UK has been dealing with a petrol supply crisis in recent weeks due to a lack of lorry drivers.
The shortage was exacerbated by stockpiling of petrol at forecourts and chaos among British citizens. The army was deployed earlier this week to help with the country’s fuel deliveries.
Let us take a look at 2 FTSE 100 index listed oil and gas stocks and how they reacted to the news:
- BP PLC (LON: BP)
FTSE 100 index listed company BP PLC is a multinational oil and gas major. The group is also the biggest forecourt operator in the UK, with 1,200 branded petrol stations in the country.
The company plans to invest about US$ 269 million in 3 projects to improve energy efficiency, carbon emissions and boost the renewable diesel output capabilities at its Cherry Point refinery in Washington, US.
The move is part of BP’s plans to meets its ambitious 2050 net-zero goals.
(Image source: Refinitiv)
BP’s shares were trading at GBX 349.10, down by 0.44 per cent on 6 October at 08:24 AM BST. Meanwhile, the FTSE 100 index was trading at 7,006.80, down by 0.99 per cent.
The company has a market cap of £70,204.40 million and a one-year return of 60.42 per cent as of 6 October 2021.
- Royal Dutch Shell PLC (LON: RDSB)
Royal Dutch Shell is another British oil and gas giant.
According to Bloomberg, the company restarted production operations at one of its key refineries in the US’ Gulf of Mexico, on Wednesday.
The company is also planning to invest about US$ 500 million in India based state owned firm Convergence Energy Services Ltd (CESL), according to reports.
Shell reportedly plans to invest in CESL’s decentralised solar business. The move is expected to be a part of Shell’s energy transition goals.
(Image source: Refinitiv)
Shell’s shares were trading at GBX 1,683.00, down by 1.43 per cent on 6 October at 08:36 AM BST. The fossil fuel sectoral index was trading at 5,993.14, down by 0.83 per cent.
The company has a market cap of £ 62,410.43 million and a one-year return of 81.69 per cent as of 6 October 2021.
