« Previous | Main | Next »

Rocket fuel...

Wendy Austin | 13:41 UK time, Friday, 25 February 2011

Is there anyone out there who hasn't noticed the speed at which oil prices are rising.?

The crisis in the Middle East has sent the cost of oil sky high. No sooner have you put petrol into the car, than the red warning light seems to start flashing again. And retailers have warned us that petrol and diesel prices are set to rise even more....soon it could cost  over a hundred pounds to fill up your average family car. Motoring only for the rich - again? 
But why are they so very high? The turmoil in the Middle East isn't helping matters, obviously. But there's more too it than that.....if only someone could explain it properly... 

Cue David Horgan - he's managing director of Petrol Resources,and came onto the programme to tell us more - it's all to do with Stock Market speculation, apparently, and buyers working themselves into a frenzy over reports from Libya - even though only about 2% of the world's oil comes from there. 

The bad news - that speculation is likely to continue while TV screens round the world show the continuing violence there ;the good news is that this latest boom might soon reach tipping point, and prices could plummet again. Back to the bad news  - since the government is looking at ways to raise money, it might try and increase fuel taxes.

Swings and roundabouts - and  no immediate light at the end of the tunnel . Maybe listener Bob was right when he texted that it could be cheaper to go to the space shuttle than to fill up at the end of the road! Have a good weekend - stay put?

Comments

 

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.