Tesco, Asda, Morrisons, Sainsbury's drivers warned over possible £720 charge at pump

Labour Party governmentChancellor Rachel Reeves will have to decide whether to keep the current fuel duty freeze.

A warning has been issued to drivers as fuel and petrol prices look set to soar if the conflict in Middle East continues to escalate. Labour Party government Chancellor Rachel Reeves will have to decide whether to keep the current fuel duty freeze.

The cost of oil climbed by around five per cent in just two days to $76 per barrel. Drivers have been warned that petrol prices could soar if the Middle East conflict continues, amid worsening relations between Israel and Iran.

And David Oxley, of Capital Economics, said such a rise could add 13p to the cost of a litre - adding £7.15 to an average family car. It means Tesco and Sainsbury's drivers, as well as Morrisons and Asda motorists, could be slapped with higher charges.

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The average to fill up is twice a week in the UK- taking the weekly cost to around £15, or across a month, a whopping £60. Analysts said a major escalation could take the oil price to $100 a barrel. AA boss Edmund King said: “Global oil prices tend to increase with any geo-political uncertainty. The Government should avoid the temptation to hike fuel duty in the Budget as drivers and industry would face a double hit.”

Fawad Razaqzada, analyst at City Index, said: “The extent of Israel’s response to Iran will influence how much geopolitical risk markets factor in. Crude oil could rise another $5 in the next few days if we see further escalation in the conflict.” Bjarne Schieldrop, chief commodities analyst at SEB, warned a major escalation in tensions could push oil prices to $100 a barrel.

Over the year, a £60 monthly increase could work out at £720 but the hope would be petrol and diesel costs stabilise for motorists who are filling up at the pump before that.