Will Saudi oil crisis affect petrol prices?

Fear of further Middle East unrest has pushed oil prices higher, despite exporters saying they are near to agreeing an increase in output.

Prices rose 1.7% in Asia to $40.50 for US light crude, while Brent crude oil in London rose $1.25 to $37.85.

Militants killed 22 people in Saudi Arabia on the weekend, prompting fears of disruptions to supply.

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The oil producing nations have been facing calls for an increase in output to stabilise prices.

Now there is concern that the cost of petrol at the pumps in the UK will rise above 90p per litre.

Could the price of crude oil reach a record high? Will petrol prices be affected? How much would you be prepared to pay for petrol?

This debate is now closed. Read a selection of your comments below.

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The following comments reflect the balance of opinion we have received so far.

The market will always get very jumpy when there is a perceived terrorist threat Paul, Worthing, UK

The short answer is yes; the market will always get very jumpy when there is a perceived terrorist threat, and the price will rise accordingly. To all those who say that they don't drive and couldn't care less about the price of oil, I would say: bear in mind that your groceries are delivered to the store by lorry; the bus runs on diesel oil; and oil is used for a lot of other things (clothing, pharmaceutical products and so on) as well as automotive fuel. All of these things will get more expensive to buy or use as the oil price rises.
Paul, Worthing, UK

Any turmoil in Saudi Arabia will affect oil prices. The price of petrol is is correlated to the gate rates for oil, but the effects of oil price fluctuations are somewhat muted. Like most people, I'll be "willing" to pay whatever is charged. However, I would then do a lot less driving. Saudi oil production is the key. They are one of the few Opec nations with a reserve production capacity. If religious fanatics took over there, the price of a barrel of oil could easily treble.
David, Milwaukee, WI, US

Everyone who's comparing the US to the UK for fuel prices should remember that the US is a much, much bigger place - they need to drive a lot further, and their public transport system is nowhere near what ours is. I do hope, however, that the rise in oil prices speeds development of alternatives to petrol for our cars. There's so many possibilities - hydrogen, electric, LPG, hybrid - surely we can get off the oil dependency by now, and this could be the push that is needed.
Mark Hughes, Uxbridge, UK

Why should fuel go up yet? The petrol due out of the refineries in the near future has already been brought at the old prices and the same applies to fuel in tankers on the high seas. Remember it's a few weeks from the Gulf to the UK by sea. The increase in petrol prices is another rip off by the oil companies.
Mike, Yateley

Let's start introducing alternative fuels as soon as possible Alastair, Paisley, Scotland

A good wake up call! Let's start introducing alternative fuels as soon as possible, e.g. 100% bio diesel from crops at petrol stations as well as alternative means of generating electricity. As has been said before it will make us more self-sufficient rather that rely on events elsewhere.
Alastair, Paisley, Scotland

The UK government could easily temper the effect of increasing oil prices on our economy by reducing the outrageous rates of tax, duty and VAT that we pay on fuel. The actual cost of oil is a small fraction of the 84p per litre we pay for our fuel. The US is virtually up in arms because they now pay over £1 a GALLON!!!!!
Andy, Sutton, Surrey

Who knows, this may even encourage people to share lifts to work or mothers with 4x4s on the school run to work out a way of having more than 2 children in the back.
Sally, Spalding

Petrol is approaching $1 a litre in Australia - which is about 40p. People here complain but it is still so cheap that only 3% of Brisbane's journeys are on public transport or by walking. A good push in price might hopefully see more investment in public transport and other forms of energy.
Paul G, Bris, Australia/ ex-UK

Why do we complain so much about the price of petrol? The cost of petrol represents approximately 25% of the cost of running a car. As cars are becoming more economical then the actual fuel cost per mile is decreasing. My 2.5 litre VW costs 20% less per mile in fuel than a 1.0 litre Citroen AX which I had 15 years ago. The largest cost of car ownership is depreciation, which typically is more then 50% of the total cost, yet this has not slowed down sales of new cars, which are at record levels. If people considered the total cost of owning a car rather than focusing on just one element then most people would be able to make significant savings despite the high fuel prices
Matt , Birmingham, England

Are we not all forgetting that the UK tax on petrol taxes everyone fairly? If you use the roads more you use more petrol therefore make a fairer contribution
J Wheeler, Exeter

I drive to the pump laughing Matt, Plymouth

My huge 4x4 drives on LPG, which is still considered a "waste" product. It was quite a big investment but especially these days I drive to the pump laughing at everyone who can't be bothered to take the advantage that is clear for everyone to see.
Matt, Plymouth

If tax was a flat rate instead of a percentage on a litre of petrol then surely the price would not rise as rapidly. I wonder how much the Treasury is making after these rises.
Andy, Wirral, UK

I don't even drive, so I couldn't care less about the price of oil.
Chris Godfrey, UK

The oil price rise will hit everyone, whether they drive a car or not. It is only a matter of time before it will be reflected in the price of the goods and services we buy. With the extra VAT the Chancellor will be pocketing as a result of the fuel price increase, he could afford to postpone the forthcoming increase in fuel duty. The alternative is that we are hit by the "double whammy" of increasing prices and increasing interest rates as the Bank of England MPC acts to curb inflation.
Tony, Nottingham UK

Why should the murder of 22 people drive oil prices up? If a refinery, pipeline or oil well had been blown up then this would directly affect the amount of oil that could be extracted. The murder of the 22 people in Saudi Arabia is a terrible event but I doubt it will affect the amount of oil being extracted, refined and put onto ships which then arrive in the west. It seems that the oil producers, retailers and governments are profiting from the murder.
Neil, England

The sooner we reduce our dependence on oil the better Barry, London, UK

The sooner we reduce our dependence on oil the better. Not only can alternative fuel sources reduce our impact on the environment, but could lead to us taking less of an interest in violent Middle Eastern conflicts.
Barry, London, UK

I suspect a few very rich people are going to be a lot richer as a result of market speculation during this oil crises. I wonder if money, rather than religion, is the motive of those that really control and fund these terror attacks?
N.J., Cambridge, England

Only slightly. The oil prices are driven up by the Iraq security fears and the balance of power in the middle east not just Saudi Arabia, however the price increase is due to an increase in demand from China and the far east, and the market manipulation of politician and traders, the increases are very much artificial
Ahmad Hmoud, Amman, Jordan

Why do we pay so much more than the USA at the pump? And they're supposed to be the biggest capitalist nation in the world!
Alan, London

Amazing. Twenty two people are killed in Saudi Arabia and people are concerned that it will affect the oil supply. What greedy buggers we all are! Where is the outrage and furore over the deaths of 22 people?
Julia, Devon, UK

Rip off Britain yet again Vicky, Stockport, UK

What a surprise - petrol prices are going up. The US are horrified at paying $2 a gallon (£1.12) while we are paying £4 a gallon. If the government weren't so greedy, we wouldn't be hit so hard. US government still make money on their petrol tax - so why do we have pay so much more than anyone else? Rip off Britain yet again - it's no wonder so many Britons want to emigrate.
Vicky, Stockport, UK

George W Bush and his 'Big Oil' friends must be crying all the way to the bank. When US gas prices hit European levels, just maybe the US motorist will have the guts to get rid of these profiteers.
Barry, London, UK and Boston, MA

Back in the 70's we were told we would not have to worry about oil as we had our own oil fields around the British Isles, what has happened to them?
David Martin, Bristol, England

It amused me to see that Ray Holloway of the Petrol Retailers Association saying that if the price of crude goes up the price at the pump would have to follow. Clearly this is almost always the case. But it appears to me that as the price of crude goes down, inevitably the price at the pump stays the same. It annoys me that they still try to take the general public for fools.
Robbie, UK

If the American public stopped driving ludicrous SUVs... Jon, Wirral, UK

I can't see how it won't. However, if the American public stopped driving ludicrous SUVs and charged consumers a realistic rate for petrol/gasoline, the US would be almost self-sufficient in oil and western economies wouldn't be as reliant on such unstable and oppressive regimes.
Jon, Wirral, UK

Although it will hurt us all in the short term, I sincerely hope oil continues to becomes more expensive. Doing so will open the door for more sustainable energy systems which will benefit us ALL in the long term. It's a case of "No pain, no gain"
Andrew Smith, Great Brickhill, UK

Yes petrol prices are high and will increase. The argument about tax is misguided though. France, for instance, pay far less petrol tax... but is it not also true that they pay much more income tax? If we had any sense we would pay a greater level of income tax, take the load off council tax and taxable commodities and make a move to reducing our consumption of oil in favour of cheaper and more sustainable fuel, thus decreasing our dependency on other states, and unlocking our economy from fluctuations caused by middle-east tensions and cartel decision making.
Simon Shone, Southampton, UK

"The prime minister does not intervene in the price of petrol ?" A huge lie even by the standards of this lying government. He pockets 90% of the 'price' of every gallon !
Mark K, London, UK

Is this really the most important consequence of the attacks in Saudi Arabia? DC, UK

90p a litre? How awful for us! Is this really the most important consequence of the attacks in Saudi Arabia? Human life has got to be more important than having to pay 10p more a litre. Surely?
DC, UK

Once again the motorist paying the penalty for government policy. Just wait till Gordon Browns delayed petrol tax increases are added later this year.
Stuart, Croydon, Surrey

Demand for oil around the world is rising, on the other hand the supply is running out. So the fact is prices will rise whether it be now or later. As for the tax we pay on fuel, more should be invested into sustainable fuel source research.
Alex Tomes, Yeovil, UK

We are already paying far too much for petrol. Unless measures are taken not just to maintain prices but to reduce the cost to the average motorist I believe that this is a subject to cause even the average citizen to revolt.
Keith Downer, London