Petrol and diesel drivers risk higher prices over | Tech News

A motoring skilled has warned that drivers may quickly face even higher prices on the pumps after President Trump introduces tariffs in a bid to help native industry. Whilst the UK’s automotive industry remains to be adjusting to the introduction of a 25% tariff on all autos imported into America, comparable measures created by Mr Trump may produce other unlucky penalties.

John Hardy, chief macro-strategist on the investment platform Saxo, famous that the tariffs may see the UK change sources for oil, having an affect on the price of petrol and diesel. He stated: “First the UK would have to enact retaliatory tariffs for there to be any impact – if it does so, the cost burden would be probably partially be absorbed by the company that has to pay the tariff and partially passed on to the end consumer in the case of manufactured goods, so a squeeze on profits for the company and less purchasing power for the consumer.

“In the case of petroleum and diesel, it will encourage a scramble to seek out various suppliers of these commodities, which can be considerably troublesome to switch utterly because the US is a important provider of crude oil, petrol and natural fuel – round 30% – so some upward stress on prices could be seemingly – as soon as again, provided that the UK chooses to impose retaliatory tariffs – which it would do at a a lot decrease fee or by no means for one thing as important as vitality imports.”

According to Saxo, the UK imported £18.7 billion of fuel from the USA during 2023, together with the crude oil that’s used to make petrol and diesel. Whilst that is considerably much less the nation’s principal importer, Norway, the USA performs a appreciable function in holding vehicles on the highway, which means that the Government might have to seek out a new source.

The company warned that, ought to tariffs be imposed on oil coming from America, this might end in the fee of oil rising, which might seemingly have a knock-on impact on the fee on the pumps.

The warning comes at a time wherein many motoring specialists are predicting that the average price of petrol and diesel will fall for the primary time in 5 months.

According to figures sourced from RAC Fuel Watch, on the finish of March 2025, motorists had been paying an average of 135.54p for a litre of petrol and 142.21p for a litre of diesel.

Whilst this isn’t the best motorists have been charged for fuel, the declining price of oil during February 2025 may quickly have an affect on prices on the forecourts.