Petrol price 'may go up 4p' as retailers urge review

 
petrol pump Motorists could be paying more for their petrol within days, the PRA has warned

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Fuel campaigners are warning petrol prices might jump 4p per litre "in coming days".

The Petrol Retailers Association (PRA) said a "full review" of the wholesale fuel market was needed.

The AA said a review would help to tackle the "fuel industry's treatment of drivers, consumers and businesses".

Next week the Office of Fair Trading (OFT) is due to report on whether reductions in the price of crude oil are being passed on to drivers.

The OFT is set to announce whether a full investigation of fuel prices is needed.

'Help consumers'

The PRA said "despite recent arctic weather cutting fuel demand across northern Europe and refinery chiefs complaining at their glut of petrol capacity", wholesale costs had risen by 5p per litre in the four weeks since Christmas.

Average prices at the pumps had gone up by around 1p - according to Experian Catalist figures - so drivers now faced another 4p per litre rise, it said.

PRA chairman Brian Madderson said: "The shock rise in wholesale costs is just one of the reasons why the Petrol Retailers' Association has been knocking on the door of the Office for Fair Trading, since this time last year, to demand a full investigation into the workings of the UK market for road fuel".

He said retailers across the country - who had already "been soaking up this increase" for motorists - would be forced to put their prices up over the coming days and weeks, with some already doing so.

Mr Madderson said: "Once again we are going to be accused of profiteering at the pumps when that is simply not true."

He urged the OFT "to step out from the shadows and help consumers by conducting a full market study that will lift the veil of secrecy from the wholesale cost movements".

Start Quote

Another new year, another new round of pump price rises after the industry failed to pass on fully wholesale price savings. ”

End Quote Edmund King AA

He also called on Chancellor George Osborne to abandon plans for a fuel duty rise in September 2013, "if fuel costs continue to rise".

Friends of the Earth's head of campaigns Andrew Pendleton said: "It's our cars' dependency on increasingly expensive oil that should be reviewed.

"Motorists will continue to pay a high price until the government and motor industry take decisive action to speed up the production of electric vehicles and cleaner cars that burn less fuel.

"Ministers must also do more to provide decent alternatives to driving, such as better public transport and safer cycling."

'Cataclysmic'

Motoring journalist Quentin Wilson said: "A 4p rise is going to be cataclysmic for motorists, for families, for businesses across the UK.

Mr Wilson, who is also a campaigner for Fair Fuel UK, said: "In some parts of the country we are seeing diesel as high as 148p so this will tip it over the psychological threshold of 150p...and it's unsupportable."

The AA said drivers were again picking up rising petrol bills, with retailers often reluctant to pass on savings when the cost of petrol is falling.

AA president Edmund King said: "Another new year, another new round of pump price rises after the industry failed to pass on fully wholesale price savings.

"The Office of Fair Trading decides soon whether to launch an investigation into fuel prices, hopefully tackling the fuel industry's treatment of drivers, consumers and businesses."

He added: "The insight we are now getting on wholesale price movements rams home the need for this information to be out in the public domain immediately.

"Wholesale petrol prices turned upward in the first week of January, average pump prices six days later. If falls in wholesale were reflected as quickly, no-one would mind - but they're not."

The chief executive of the Road Haulage Association, Geoff Dunning, said increases in the cost of fuel affect the economy in two ways: "One is, obviously, for the person in the street when they're buying fuel, they spend more on fuel and therefore can spend less on other things - on food, on clothes, on anything else - and the other effect is that the price of fuel affects the price of goods in the shop, because everything that's delivered to the shop comes in a truck."

 

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  • rate this
    +3

    Comment number 525.

    At last we are becoming more and more informed on the lack of transparency, fariness, competition and influence in the oil markets and the way in which they operate. They exist to serve the interests of the extremely welthy few, supported by the interests of a ruling elite for one purpose.....

    ....to exploit us the consumer...... when will we all wake up...?

  • rate this
    +3

    Comment number 524.

    Everyone complains about the price of fuel, but Morrisons is nearly 10p a litre less than Texaco, and 5p a litre less than BP (the other garages close to our house). If everyone went to the cheapest garage and ONLY the cheapest garage, then prices would start to come down. There are even web-sites that tell you where to go! Unfortunately this seems beyond the brain power of the average person.

  • rate this
    -1

    Comment number 523.

    If him up there wanted the meek to inherit the earth, why did he put stake claims on valuable minerals for the powerful.

  • rate this
    +2

    Comment number 522.

    It's 2013 and we're traveling about in vehicles fueled with a derivative of oil. Which suits a number of huge organizations and governments.

    Am I paranoid and/or cynical in believing that a formula exists in an underground vault somewhere which would propel a vehicle using water, air or sunlight, in an efficient manner?

  • rate this
    +7

    Comment number 521.

    514. never walk alone
    I think a catalyst to cheaply extract hydrogen from water is what will ultimately be needed. But your right the tax will be found from somewhere.
    I can't believe someone marked me down for a bit of humour, it happened earlier also when I offered what I thought was helpful friendly advice on how to acquire a bicycle cheaply through the bike 2 work scheme.

  • rate this
    +7

    Comment number 520.

    Most comments are about the tax levels and company profits; however, the simple fact is that all oil derivatives are going to become rarer and more expensive, as the natural resources are depleted.

    An interesting statistic quoted a few years ago was: if China used cars in the same way the West does, all the known fuel resources would be used up in 2 years!

  • rate this
    +2

    Comment number 519.

    55. disgruntled
    "Money is money etc ..natural competition should be the only thing allowed to influence prices on..." "Less fiddling by the government....".
    Do you really think we have a free market? Don't you recognise the use of cartels in the energy and banking industries? Did you not read about Libor? Supermarkets squeezing out small retailers by unfair practices? We need more govt control!

  • rate this
    -40

    Comment number 518.

    At £2.50 litre (£10/gal) it would still be cheap. The energy in one gallon of fuel can move roughly one ton of car 40 miles. How much would you have to charge to push your car 40 miles? A weeks wages probably. Fuel only accounts for 20% of motoring costs so a 4p rise would only add 0.6% to your motoring costs.

  • rate this
    +4

    Comment number 517.

    The cost of fuel boils down to one thing.
    Its priced at what the companys think they can gey away with.
    Many companys are also supply to themselves via another company.
    We are being deficated on from both oil companys and the Government, and neither of them care how far the price rises.

  • rate this
    +5

    Comment number 516.

    I see people wasting fuel everyday. Excessively large cars/engines, idling whilst phoning/waiting/eating, excessive acceleration. There's a lot of people that clearly don't think fuel is too expensive to burn unnecessarily. PS. Duty has gone down in real terms - see www.parliament.uk/briefing-papers/sn04712.pdf. Apologies for bringing facts into the discussion!

  • rate this
    +2

    Comment number 515.

    When cooking crabs they say the most humane method is to put them in cold water then bring them up to the boil slowly... sell your car now... get out of the pot while you can!

  • rate this
    +3

    Comment number 514.

    501.
    A Seditious Malcontent
    As to harnessing the hot air its just another way of making you pay more for less :) They'll hike up the prices again better to buy yourself a dynamo that way you have free fitness charge the battery and go electric ..the future beckons and escape the greedy Energy companies except knowing the council they'll probably find a way of taxing the change of use !

  • rate this
    +3

    Comment number 513.

    Oil and energy companies get away with charging what they want because we let them,we need to take to the streets or do something to stop them,the more people whiny about it bu do nothing the more these companies will see it as a green light to carry on their scams

  • rate this
    +3

    Comment number 512.

    502.
    Sue Doughcoup

    your pedanticism has shown that you have lost the argument
    ___

    What pedanticism? What argument?

    If you feel so strongly that motoring taxes don't pay the full costs of use of the roads, why not campaign to have them ringfenced and only spent on roads? Any surplus going only to the NHS to pay only for road related costs? Thus tax only relates to the costs!

    I'd vote for that!

  • rate this
    +6

    Comment number 511.

    Technology will empower us to eventually dispose of the paraites that are bleeding us dry.

    Fuel will be replaced by road pricing, however 'parliament' will be replaced by democracy.

  • rate this
    +4

    Comment number 510.

    @494
    Try the north of Scotland where to get anywhere, you often have to take a scenic route and a packed lunch!
    Cars are a neccesity if you stay in certain areas, we are the ones being punished.
    To go to the doctor takes a half gallon of fuel (no bus!)
    Supermarket a gallon at least! (you guessed it - no bus!)
    People say move closer - WHY? We have virtually no crime, great views, clean air.

  • rate this
    +2

    Comment number 509.

    @502. Sue Doughcoup

    Your arrogant holier than thou attitude screams off the page.

    NEWS FLASH. This country does not have a system of directed taxation therefore all tax or duty from motoring goes to central coffers and so if you get your way with regard to cars then YOU will be taxed more and probably still loose services anyway

  • rate this
    0

    Comment number 508.

    468commonsense1

    @464
    They need more taxes to pay off the debt because it can't cut any further. If the Gov didn't borrow from private banks at interest it wouldn't have to
    ===
    Okay. So your beef is with govt policy, and nowt to do with fuel duty.

  • rate this
    +3

    Comment number 507.

    @502.Sue Doughcoup

    Sue, you haven't put anyone right all day.

    You lost what little credibility you had when you said people in terraced houses/flats with no off-road parking should be banned from owning cars.

    Stop digging now while you can still get out.

  • rate this
    +1

    Comment number 506.

    Its not just affecting the motorist to those unsympathetic to another hike in prices, it affects EVERYONE. You buy food dont you, thats got to be delivered by lorry .You get on the bus, you pay more cos they pay more. If youre breathing , it will affect you. Why should we pay VAT on petrol duty? A tax on tax .

 

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