Grangemouth Pushes Oil to Pounds 5 a Gallon

Record oil prices and the impact of the Grangemouth refinery dispute yesterday left the average price of unleaded petrol on the brink of pounds 5 a gallon.

The AA said UK motorists are paying an average of 109.8p a litre for unleaded, equivalent to pounds 4.99 a gallon.

It came as the Grangemouth stoppage entered its second day and crude oil prices reached a new record of EUR119.93 a barrel, before falling back by just under a dollar.

The 48-hour refinery walkout has been described as an “aggravating factor” in crude’s latest spike. It saw BP close off a major North Sea oil pipeline powered by the site, and has also led to fuel supply concerns in Scotland and the North of England.

Drivers were today facing rationing at some of Scotland’s 956 petrol stations as motorists rushed to fill up tanks. Oil’s record run – crude prices are up nearly 20 per cent during the past month – has helped push UK petrol and diesel prices to new heights. Diesel averaged at 119.8p a litre yesterday, up more than 25 per cent over the past 12 months.

The Grangemouth shutdown comes amid supply outages in Nigeria that have helped to support oil.

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