Why has petrol risen despite oil price fall?

R.B · 2015-04-17T11:10:06+00:00

Motorists' groups reacted with anger last night as it emerged that the cost of petrol was rising again – soon after a fall in world oil prices. Campaigners said drivers were being ‘fleeced' by oil firms and high fuel duty. For months, the cost of fuel fell to just 113.42p for diesel and 106.39p per litre of unleaded. But the cost of filling a tank with petrol has risen by almost £4 and £3 for diesel. The rise comes despite a dip in world oil prices in March, from a high of $60 a barrel to $54, triggered by competition between the US and other nations. But this fall was not passed on to drivers because a surge in global demand means supermarkets are being charged top-dollar wholesale prices. The increase in demand is partly sparked by annual oil refinery maintenance that limits production just as fuel use in the US increases in the spring, the AA said. In the last two months, the cost had edged up by almost 7p a litre for petrol and 5.3p for diesel as worldwide demand increases. Last night, the AA said increasing prices were putting families under pressure as wage growth remained poor – and urged the next government to continue to freeze fuel duty. A spokesman said: ‘It does not look good for motorists. Prices will continue to rise until at least the middle of the summer. ‘It is unlikely we will see prices dip as low as they did in February in the foreseeable future unless there is another major shift in the oil market. ‘Motorists are feeling trapped by what is happening to fuel prices. Many families are still on very tight budgets and struggling with significant increases in pump prices. It is forcing them to cut back elsewhere.' In an extra blow, retailers are charging about 5p a litre more for diesel than for petrol. Usually the difference is around 2p. Critics said diesel drivers were being punished for lower margins on petrol, and being forced to make up the difference. Despite retailers buying diesel and petrol for similar prices, diesel is 5p higher at 118.7p a litre, compared to 113.35p for petrol. Critics said high fuel tax was also squeezing family finances. In Britain, 70 per cent of the pump price is tax – the joint highest rate in Europe. Campaigners said oil firms should publish wholesale prices so motorists could see why they were paying more despite a dip in world crude oil prices. Howard Cox, of the FairFuel UK Campaign, said: ‘The main political parties ignore 70 per cent of the electorate, the 40million licensed UK drivers, at their peril. Motorists are fed up with being fleeced.' Source: dailymail

Thread starter R.B
Start date Apr 17, 2015

R.B

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Why has petrol risen despite oil price fall?

R.B

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