Britons may soon experience a drop in fuel prices following the approval of importing diesel and jet fuel refined overseas from Russian crude oil under a sanctions exemption. This decision aims to alleviate the strain caused by surging fuel costs, which have been a burden on airlines and households, largely due to escalating fuel prices driven by the recent Iran conflict.

The UK’s move to allow the import of fuel refined from Russian crude oil mirrors a similar action taken by the US. The US recently extended a sanctions waiver to enable the purchase of Russian seaborne oil to support countries facing energy vulnerabilities linked to disruptions in the Middle East conflict and the closure of the critical trade route through the Strait of Hormuz.

Despite the US decision to extend waivers, it has faced criticism for potentially boosting Kremlin revenues and funding the conflict in Ukraine. Sanctions have been in place to curb Moscow’s energy income since the 2022 invasion of Ukraine, but Russian crude oil continues to find its way to global markets through intermediaries.

With Brent crude trading near $110 a barrel, concerns over disrupted oil flows through the strait have kept prices high. Rising fuel costs have placed significant pressure on the global economy and the aviation industry, with jet fuel prices soaring and accounting for a substantial portion of airlines’ operational expenses.

In the UK, soaring fuel prices have added to the challenges of cost-of-living pressures as the government grapples with inflation and energy affordability concerns. The new regulations, effective from May 20, allow exemptions for fuels processed in third-party countries but come with stringent record-keeping requirements for businesses.

While the regulations will be subject to periodic reviews and potential modifications, they are set to remain in effect indefinitely. Additionally, Britain has issued a time-limited license covering the maritime transport of liquefied natural gas from Russia’s Sakhalin-2 and Yamal projects, along with associated services, until January 1 next year.