Fuel prices could soar after EU bans Russian oil

Hold on to your wallets everyone, the price of fuel might skyrocket next week. After experiencing a mix of rollback and price hikes last Tuesday, the next round of price adjustments could see a big increase in both gasoline and diesel prices.

Members of the European Union (EU) have agreed to ban Russian oil imports by the end of the year. This was confirmed by EU Council President Charles Michel, who announced that this will cut a huge source of financing for the country's war machine ever since it invaded Ukraine earlier this year.

“We want to stop Russia's war machine and cut financing of Russia's military capacity by implementing sanctions that will put pressure on the Kremlin. Tonight, the European Council has agreed a sixth package of sanctions.” shared Michel.

The EU Council President added that the sanctions will immediately impact 75% of Russian oil imports. And by the end of the year, 90% of Russian oil imported into Europe will no longer be allowed.

While the ban on Russian oil is welcomed by the EU Council and Ukraine, this doesn't exactly bode well for the energy market. With the price of gasoline and diesel still at an all-time high, the ban could worsen the already tight oil market. Immediately after the EU's announcement, the price of Brent crude oil rose to USD 122 per barrel at the latest. It's expected that the price could still continue to go up given the recent development.

If you already filled up on gasoline or diesel recently, you might want to fill up your tanks again this coming weekend. But for now, we'll keep a close eye on the price of crude oil this week.