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Last weekend, lorry driver Rod Quaite encountered a diesel shortage when he stopped at a supermarket forecourt to refuel. Throughout his work journeys across Northern Ireland, he has noticed fuel prices steadily climbing, with the amount of increase varying depending on the location. This pattern has become increasingly evident following recent military actions involving the United States and Israel against Iran, and subsequent Iranian retaliatory strikes in the Middle East.
BBC News NI investigated the situation at fuel pumps to understand whether there were actual shortages or if consumers were engaging in panic buying. Data from early March shows that, a week before 12 March, average prices stood at £1.26.2 for petrol and £1.33.8 for diesel. By 12 March, Magherafelt in County Londonderry recorded the highest petrol price at £1.39.9, while Omagh in County Tyrone experienced the highest diesel price of £1.64.8. The escalation in prices parallels a rise in Brent crude oil prices, which climbed from $73 a barrel to $106 as of 9 March.
Brian Donaldson, CEO of the Maxol Group, which operates petrol stations throughout Northern Ireland, explained that approximately 20% of global oil shipments pass through the Strait of Hormuz, meaning any disruption there affects prices immediately. He emphasized that while most of Northern Ireland’s fuel supply arrives via the UK, the interconnected nature of the global oil market ensures local prices reflect worldwide shifts. Over the past 12 days, the cost of petrol increased by 11.38p per litre (excluding VAT), and diesel saw an even steeper jump of 22.38p per litre excluding VAT. It is noteworthy that more than half of the retail price for both fuels goes to UK government taxes.
Despite the rising costs, Donaldson reassured that Northern Ireland is not experiencing supply shortages. He described the supply chain as resilient, with adequate fuel available to meet current demand. Unlike previous disruptions, such as those caused by Russia’s invasion of Ukraine which led to product scarcity, the current situation is largely about pricing rather than physical availability. The Irish Petrol Retailers Association agreed, with spokesperson David Blevings confirming that terminals in Belfast and Derry remain well stocked across all fuel grades. Meanwhile, the Consumer Council reported no evidence of panic buying, although Donaldson acknowledged a short-term increase in demand within the first week of the conflict, which he attributed to consumers anticipating price rises rather than worries about supply.
The impact on consumers has been mixed. Rod Quaite, who lives near Ballymena, noted that fuel price increases vary significantly by location, with diesel prices rising more sharply than petrol. He expressed frustration over diesel’s heavier price hikes, predicting it could soon approach £2 per litre. Despite these increases, he has not significantly altered his driving habits, preferring to keep his tank full for emergencies. Similarly, Andrew McCusker from outside Rathfriland carefully monitors fuel prices daily to find the best deals. While currently managing his 10-mile commute by car, he is open to switching to public transport if prices rise dramatically, such as if petrol reaches around £1.80 or £1.90 per litre.
On the issue of price regulation, the Competition and Markets Authority has announced plans to increase its surveillance of petrol and diesel prices across the UK, reflecting growing public interest and concern over fuel costs
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