The United Kingdom will allow the import of diesel and jet fuel refined abroad from Russian crude oil through a sanctions exemption, easing restrictions at a time when rising fuel prices are putting pressure on airlines and households — partly driven by the Middle East conflict.
This move follows a similar step by the United States, which on Monday extended a sanctions exemption allowing the purchase of Russian oil transported by sea to support energy-vulnerable countries affected by supply disruptions linked to the conflict with Iran and the closure of the Strait of Hormuz.
Critics of the US decision to extend the exemption say it has allowed the Kremlin to generate more revenue and fund the war in Ukraine, which is killing innocent people.
Brent crude oil was trading at around $110 per barrel on Tuesday, near recent highs, reflecting concerns about disrupted flows through the strait.
The increased fuel costs have been affecting the global economy, with jet fuel prices rising significantly in recent months, further burdening airlines, for which fuel costs can account for up to a quarter of operating expenses.
Airlines around the world have responded by raising ticket prices, reducing capacity, and warning of weaker financial results.
Increased fuel prices have also impacted wider pressures on the cost of living in the UK, which the government aims to relieve whilst tackling the challenges of both inflation and energy costs.
