Drivers warned not to panic buy at pumps amid price rise fears

RACHEL Reeves has been urged to scrap the hike in fuel duty due in September amid fears the Middle East crisis could trigger panic buying at the petrol pumps.

- BY MARTYN BROWN

Global oil and gas prices have skyrocketed, leading to concerns of soaring prices on the forecourts.

Drivers have been urged not to panic buy, with the AA assuring them the increases would “take time” to show up in pump prices.

The Chancellor announced last year the long-held discount in fuel duty would end in September, with a 1p hike followed by two increases of 2p each in subsequent years.

But concerns have been raised about the impact of oil price hikes that could hit consumers at the pumps following the US and Israeli attacks on Iran at the weekend in which Supreme Leader Ayatollah Ali Khamenei was killed. The price of oil jumped to $80 a barrel after the attack, with some analysts suggesting it could rise above $100.

Saudi Arabia's Aramco oil refinery has been hit by an Iranian strike, while Qatar halted production of liquefied natural gas production after its energy facilities were targeted by Tehran.

The shutdown risks inflation in Britain, which relies on Qatar for about 2% of its imports. Gas prices have now leapt at their fastest pace since the start of the Ukraine war.