In 2021, we saw the beginning of the petrol crisis<\/a>. The long-term effects of the pandemic caused a shortage of drivers<\/a> due to the aging demographic of the sector, meaning a lot of workers retired during Covid-19. \u00a0Adding to the already growing issue, in September fuel demand increased, which combined with the shortage of delivery drivers, created a mismatch between supply and demand, causing fuel prices to skyrocket. By October 2021, fuel prices were at their highest level since May.<\/p>\n Now, as the Russia and Ukraine conflict rages on<\/a>, and more economic sanctions are put in place to deter Russia from further invasion of Ukraine, we are beginning to see the start of a detrimental petrol shortage and price increase, as prices hit a record high, spiking to \u00a31.50 a litre.<\/p>\n This means that fuelling vehicles will become the most expensive that it has ever been. If petrol costs rise to \u00a31.60 per litre, filling up a family car will cost as much as \u00a388, according to RAC.<\/a><\/p>\n RAC fuel spokesman Simon Williams commented: \u201cBoth petrol and diesel reached new record levels yesterday. Unleaded is nearly 149.5p a litre and diesel almost 153p.<\/p>\n \u201cRussia\u2019s actions will now push petrol pump prices up to \u00a31.50 very soon. The question then becomes where will this stop and how much can drivers take, just as many are using their cars more and returning to workplaces.<\/p>\n \u201cIf the oil price was to increase to 110 US dollars, there\u2019s a very real danger the average price of petrol would hit \u00a31.55 a litre.<\/p>\n \u201cThis would cause untold financial difficulties for many people who depend on their cars for getting to work and running their lives as it would skyrocket the cost of a full tank to \u00a385.<\/p>\n \u201cAt 120 US dollars a barrel \u2013 without any change to the exchange rate which is currently at 1.35 US dollars \u2013 we would be looking \u00a31.60 a litre and \u00a388 for a full tank.\u201d<\/p>\n The petrol crisis will likely increase construction project costs,<\/a> in terms of delays and production costs. \u00a0We already saw this with the fuel crisis last September, but as prices hit an all-time-high, we can only expect this to get worse.<\/p>\n The soaring prices in fuel will not only hit large companies, but individual contractors. Many contractors rely on public petrol stations to fill their vans, so shortages and rising costs may mean a shortage in work and a means to go and make a living.<\/p>\n How Russian invasion of Ukraine could impact on cost of living:<\/p>\n * Energy price cap could hit \u00a33,000 in October<\/p>\n * Food prices could rise by 8.2% in April<\/p>\n * Petrol prices expected to rise to more than \u00a31.70 a litre<\/p>\n \u2014 Steven Swinford (@Steven_Swinford) February 24, 2022<\/a><\/p><\/blockquote>\n\u2018Untold financial difficulties for many people\u2019<\/h3>\n
What does the petrol crisis mean for the construction industry?<\/h3>\n
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