Ukraine Crisis Will Send U.K. Fuel Prices Even Higher, RAC Warns

U.K. gasoline and diesel prices that have hit record highs will likely keep climbing on the back of escalating tensions over Ukraine, automotive services group RAC said.

The average price of gasoline reached 149.12 pence ($2.02) a liter on Sunday, while diesel fetched 152.58 pence, the motoring organization said. Fuel costs have jumped as crude oil closes in on $100 a barrel on mounting concerns over Ukraine, at a time when consumers are facing rising energy and food bills.

The crisis over Ukraine “is already causing oil prices to rise and will undoubtedly send fuel prices inexorably higher toward the grim milestone of 1.50 pounds a liter,” RAC fuel spokesman Simon Williams said in a statement. “The price of oil is likely to go above $100 and stay there on the back of traders fearing future disruptions in supply.”

With retailers likely to pass on the costs, that spells “bad news” for British drivers struggling to afford fuel for cars, he said.

Russian President Vladimir Putin recognized two self-proclaimed separatist republics in eastern Ukraine and ordered the Defense Ministry to send what he called “peacekeeping forces” to the breakaway regions. He has repeatedly denied there are plans for Russia to attack its neighbor.