UK holidaymakers face being hit with hundreds of pounds in hidden travel costs this summer due to the ongoing oil crisis in the Middle East.
Holiday package providers are legally allowed to charge up to 8 per cent of the total cost of the trip in case of fuel surcharges or taxes, even after the purchase – and without free cancellation.
The travel industry expects prices to rise in the coming months ahead of the summer holiday season as the conflict in Iran continues.
It comes amid reports that the last known shipment of jet fuel arrived in the UK this week from the Middle East due to Iran’s ongoing blockade of shipping in the Straits of Hormuz.
Under the package travel regulations, companies are able to apply contingency fees based on their terms and conditions for unexpected cost increases of up to 8 percent of the total cost of the vacation.
A travel industry source said: “It’s rare, but it’s on their terms and conditions, so they have the right to do it.”
If the fee is more than 8 percent, they are legally obligated to offer additional vacation days or cancel the entire vacation for free.
For a family of four, the extra cost could be hundreds of pounds.
A spokesman for the UK travel agency ABTA said: “If you have already booked your summer package holiday, rest assured that there are very clear rules around payment, designed to protect you.
Meanwhile, Government sources have insisted there is no immediate threat to jet fuel supplies despite reports in the Financial Times which suggested the last known shipment from the Middle East was due to arrive in the UK this week.
A spokesman for Airlines UK said: “UK airlines are currently experiencing no disruption to jet fuel supply and are continuing to liaise with fuel suppliers and the Government to monitor the situation.”
The UK imports 38 per cent of its jet fuel from the Middle East, meaning ongoing supply constraints will begin to weigh on the sector in the coming weeks. The UK can rely on other sources, such as the Netherlands and the US, but shocks such as the Iran war could push prices up globally. This can come down to customers buying flights and holidays.
Jet fuel costs have soared following the US and Israeli decision to attack Iran, and analysts say one in 20 flights have been canceled worldwide due to fuel costs ranging from $742 (£561) a metric ton last year to $1,710 (£1,293) today.
Travel industry officials declined to speculate on the prospect of flights being canceled during the summer holidays, but analysts have warned of a possible shortage of jet fuel if the Strait of Hormuz remains closed.
ABTA said it is “difficult to predict what will happen to the prices of future holidays, and transport is only one part of the cost.”
Donald Trump said the UK and other countries that did not take part in the attacks against Iran should maintain the vital shipping lane themselves to prevent rising fuel prices.
Posting on his Truth Social platform, the President of the United States wrote: “All the countries that cannot get jet fuel because of the Strait of Hormuz, like the United Kingdom, which refused to participate in the descent of Iran, I have a proposal for you: Number 1, buy from the US, we have a lot, and Number 2, build a slow courage, go to the Strait, and go to the Strait.
“You’re going to have to start learning to fight back, the USA will no longer be there to help you, just like you weren’t there for us.
“Iran is basically over. The hard part is over. Go get your oil!”
It comes as Reform UK said it would cut tax on short-haul flights for adults traveling with children as it looks to capitalize on the Middle East crisis.
The party’s Treasury spokesman, Robert Jenrick, said they would cut the workload of airline passengers to save the average family £45 from their flights at a cost of £166m to the Exchequer.
Opposition parties argued that the tax cut is “half-baked” and a “gimmick”.
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