Why are petrol prices so expensive? How the Russia and Ukraine conflict is affecting oil prices in Leeds

With petrol prices at an all-time high and set to continue increasing, people across the country can’t understand why they are having to pay so much to fill up their cars with fuel.

By Lauren Woodley
Thursday, 9th June 2022, 2:42 pm

For the first time in history, to fill an average family car in Leeds with petrol will now set you back over £100.

Read More

Read More
Petrol prices Leeds: Cheapest diesel and unleaded petrol costs near me - and whe...

So, why are fuel prices at a record high?

Sign up to our daily newsletter

For the first time in history, to fill an average family car in Leeds with petrol will now set you back over £100. Photo: Steve Riding

Below is everything you need to know about why fuel costs are rising.

Oil costs and demand

The cost of petroleum, the fossil fuel that we put into our cars, has gone up on the oil market.

This is not sudden and has been happening gradually over a two-year period.

At the start of the Covid-19 pandemic in 2020, crude oil prices dropped as the demand for the oil was so low.

But, since the world has slowly started to go back to normality, the demand for the energy resource has started to increase again.

Suppliers cannot keep up with the increasing demands so prices are now rising again.

The Russian - Ukraine Conflict

The situation is made worse by Russia’s war against Ukraine.

When there are conflicts on a large scale in Europe, it is likely to see the cost of supplies rise.

As Russia is one of the world’s largest producers of oil, any disturbances to the production process of its petroleum will have a global impact.

Although the UK has planned to phase out all of its imports of Russian oil by the end of this year, the lack of supply will need to be replaced somehow.

This will come at a cost, as the demand for oil from other producers will then increase with other countries like the United States also banning imports of fuel from Russia.

Other oil producers will then put up their prices to try and compete with fellow manufacturers.

Even supermarkets, which used to have lower prices for fuel than the average petrol station have abandoned this strategy, with their costs at an all-time high too.