BusinessDay

UK prime minister seeks replacement for banned Russian oil

Boris Johnson, the Prime Minister of the United Kingdom, is reportedly planning a trip to Riyadh to discuss a possible replacement for banned Russian oil.

According to Sky News, Downing Street has not confirmed or finalized the trip, but Conservative legislators have urged the UK Prime Minister to approach Saudi Arabia for oil.

Johnson has a better chance of success with the Saudi rulers because he’s closer to Crown Prince Mohammed, the de facto ruler of the Kingdom, than any other head of a G7 government, sources close to the authorities told Sky News.

“The government will work with companies through a new Taskforce on Oil to support them to make use of this period in finding alternative supplies.” the Department for Business Energy & Industrial Strategy said.

Read also: UK Prime Minister invites Nigeria, 21 Other African countries to investment summit

Rising oil prices have taken a heavy toll on UK households and businesses. The Guardian reported last week that many British businesses were struggling to make ends meet as gasoline prices reached a record high of nearly $2.10 per liter (1.60 pounds).

“In less than a year, fuel prices have jumped from £1.16 to £1.61. Because I cannot pass these costs on to our customers, I have to swallow about 37 per cent of my profit margin. It’s becoming really hard to keep my drivers on,” one delivery company owner told The Guardian.

Oil and fuel prices have risen in response to Russia’s incursion into Ukraine, but they have been rising for some time. Downing Street’s decision to phase out Russian oil imports by the end of the year did not help matters, though public opinion appears to support any punitive move against Moscow.

“The phasing out of imports will not be immediate, but instead allows the UK more than enough time to adjust supply chains, supporting industry and consumers,” the Department for Business Energy & Industrial Strategy indicated.

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