Irish motorists could be hit with rising fuel prices thanks to the EU’s embargo on Iran’s oil… but it’s all for the greater good, apparently.
As if we weren’t already enjoying paying through the nose for petrol and diesel, it looks like we could be paying a little more thanks to this new Iran oil embargo (we say new because it’s not the first time Iran has had their oil embargoed).
We all know about Iran’s nuclear programme by now, but the EU isn’t too happy with it as they claim there isn’t enough transparency in it… or any transparency for that matter.
So, the EU has decided that if Iran won’t stop whatever nuclear activity it’s up to, the EU won’t buy any more oil off them. However, the EU buys around 20 per cent of Iran’s oil, which amounts to over 600,000 barrels a day. So both parties are losing out.
Because of the embargo, Iran has threatened to close the Strait of Hormuz where 35 per cent of the world’s oil tankers travel through to reach oil rich countries such as Saudi Arabia, Iran, Iraq, the United Arab Emirates, Qatar and Kuwait. This alone has caused some instability in the market and petrol prices have risen by about 1c since.
Speaking about the expected fuel increase, Tanáiste Eamon Gilmore said, “While this is clearly an issue for consumers, the expected price increase has to be weighed against the seriousness of the problem of Iran’s nuclear programme”.
So you might be paying a few cent more at the pumps, but at least you’re not funding a nuclear programme that no-one really knows about. The embargo won’t take effect until July when existing contracts finish up, so we’ll have to wait and see what the long term will bring.
[Image via IoM – Flicker Commons]
