Ukraine tensions push petrol prices to new record high

Average UK petrol and diesel prices have hit new highs as the Ukraine crisis continues to affect oil prices, the RAC has said.

On Wednesday petrol prices hit 149.30p per litre and diesel hit 152.68p a litre, the motoring group said.

Oil prices jumped after Russia ordered troops into two Ukrainian regions this week, sparking invasion fears.

Wholesale gas prices also continue to climb, threatening to further push up heating bills.

Russia is the second-largest oil exporter after Saudi Arabia and the world's top producer of natural gas.

While the UK gets little of its oil and gas from Russia directly, there are concerns sanctions could constrict supplies, driving up wholesale prices globally.

This would come as UK consumers are already paying a high price for energy and fuel due to a surge in demand following the easing of Covid restrictions.

Former National Grid boss Steve Holliday told the BBC's Today programme: "For the UK, it's a price issue, it's not a security supply issue.

"We already know that we've got consumers that are already experiencing huge jumps in their energy bills, so this is really very unwelcome."

The price of Brent crude oil, an international benchmark, hit a seven-year high of more than $99 (£73) on Tuesday before falling back on Wednesday.

However, fuel pump prices lag behind oil prices and the RAC has warned petrol could go higher than £1.50 a litre in the coming days.

Meanwhile on Wednesday, UK wholesale gas prices rose further following Germany's decision to halt Nord Stream 2 - a new gas pipeline connecting the country with Russia.

UK prices for delivery in March rose by 13.5p to 200p per therm, though that is still much lower than the highs of December last year, when it peaked at over 400p per therm.

Western nations and Japan on Tuesday punished Russia with new sanctions for ordering troops into separatist regions of eastern Ukraine.