The UK government has relaxed its sanctions on Russian crude oil amid surging fuel costs.
It will now permit the import of jet fuel and diesel refined in third countries.
A new trade licence, which came into effect on Wednesday, allows these imports “indefinitely”.
The licence specifies that the sanctions carve-out will be periodically reviewed as fuel prices continue to rise, driven by the closure of the Strait of Hormuz and the ongoing crisis in the Middle East.
This move marks a shift from the government’s previous stance.
It had earlier announced that the UK would block Russian oil refined in other nations in a bid to “further restrict the flow of funds to the Kremlin”.
Tory leader Kemi Badenoch called the move to waive some of the sanctions “insane”.
She posted on X: “After 18 months of ‘standing up to Putin’ the Labour govt quietly issued a licence allowing imports of Russian oil refined in third countries.
“Yesterday Labour MPs voted against UK oil and gas licences. We are now importing from Russia instead of drilling in the North Sea. Insane.”
US treasury secretary Scott Bessent, earlier this week, extended a 30-day sanctions waiver allowing the purchase of Russian oil shipments already at sea.
“This extension will provide additional flexibility, and we will work with these nations to provide specific licenses as needed,” he said in a post on X.
“This general license will help stabilise the physical crude market and ensure oil reaches the most energy-vulnerable countries.”
It comes amid new figures showing petrol prices have eclipsed the previous high set during the Iran oil crisis.
On Tuesday, the RAC said the average price of a litre of petrol at UK forecourts stands at 158.5p, which is the most expensive it has been since December 2022.
Following the beginning of the conflict in the Middle East on February 28, the price had previously peaked at 158.3p on April 15.
RAC head of policy Simon Williams earlier this week described the recent rise as “bad news for drivers ahead of the bank holiday” and warned prices are set to become even more expensive.”
He said: “RAC analysis of wholesale fuel data unfortunately indicates that unleaded is now likely to increase to at least 160p a litre in the coming weeks, unless there’s a dramatic and sustained drop in the price of oil which has been above 100 US dollars a barrel since late April.”
It has been widely reported that on Thursday, Chancellor Rachel Reeves will abandon her plan to increase fuel duty from September.
She announced in her November 2025 budget that the 5p per litre fuel duty reduction – introduced by the Conservative government in March 2022 – would be extended until the end of August 2026, with rates then gradually returning to previous levels over the next five years.
The Treasury has been contacted for comment.
