Thursday 18th September 2008

Petrol Prices Soaring While Oil Falls

Petrol firms accused of 'profiteering' while oil prices fall 40%

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Pump prices still rising

Petrol prices are increasing despite massive drops in the price of oil, it has been reported. It is understood that some petrol stations are asking 2p a litre more for unleaded – or nearly 10p a gallon – over the last few days. This means motorists are paying £1 more every time they fill up.

Meanwhile wholesale oil prices have dropped nearly 40% since July and the wholesale cost of diesel and petrol is down 30%. The revelations have led to accusations of profiteering and motoring groups are demanding forecourts drop their prices.

AA spokesman Luke Bosdet said: 'These dramatic falls should be filtering their way to the pumps by now. Instead, garages are putting on 1p and 2p a litre to screw a bit of extra cash before the inevitable drop.

'It looks as if garages are trying to squeeze a penny or 2p a litre extra out of motorists before prices do drop. It smacks of profiteering. It really is outrageous that pump prices should be rising when oil is plummeting.'

This week alone the wholesale cost of petrol has dropped 10% but the AA has revealed that the average price of petrol rose from 112.88p to 112.91p a litre - with some petrol stations charging a lot more.

Ray Holloway of the Petrol Retailers' Association, which represents 6,100 of the 9,200 filling stations, said the irregularities were down to currency fluctuations. He added: 'Oil is traded in U.S. dollars and the British pound has fallen in value against the dollar, which is making the cost of fuel to UK customers more expensive.

'Without this currency difference, petrol and diesel would be up to 5p a litre cheaper in Britain.'

[Official Slacker]

Enough said . . .

[mk1fan]

Hmmmm, It's amazing how quickly the price of petrol went up in line with the rise in oil but hasn't come down as quickly. The line about currency fluctuations is, imo, flannel. The Pound has only fallen in the last month so what about the three months prior to that?

I'm starting to lean more towards agreeing with a 'Windfall Tax'.

[Fire99]

Considering Fuel is something we pretty much depend on its flippin outrageous that we have to swallow instant increases when oil goes up but don't get the reduction when oil prices drop...

If the government wanted to reclaim even a hint of respect how about getting off their backsides and doing something about this..........

[mrk4thom]

I heard Ray Holloway on Radio 4 yesterday, what a tt. Oil is down +45% from peak and the pound is moved 12%, therefore net 30%, therefor Unleaded should be 70-80p.

I'd love to dip him in a barrel of oil, then make him smoke a cigarette.

[hill79]

s

[illmonkey]

Petrol dropped a penny at my local yesterday. Im hoping by the weekend it'll be an other 4p off!

When it was on the rise, it rose 4p in a day.

[noogie]

I definitely want to work for an oil company...these guys r one of the few industries who r still making a killing at the moment!

[Gonewest]

Unfortunately no one can force the greedy retailers not to add on an extra penny or two.Only maybe when their forecourt is empty!

[Mclovin]

lets face it if the price drops the old government will slap a few pence on in tax before anyone realises....their not profiterring their waiting for the government tax increase then they reduce...a loss loss situation for the consumer who bank rolled an oil war to pay higher oil prices

[edb49]

Exactly the same happens with banks and interest rates on savings. As soon as the interest rate goes down they change their savings rates within days. When the interest rate goes up, it takes them a good few weeks to pass this on to their savers. The opposite happens with variable rate mortgages.

[Fetchez la vache]

The oil companies are acting as an oligopoly - more than one company acting as a monopoly. Always have done, always will.

[Apache]

Isn't this because we are now buying the oil that was speculatively bought on the futures at inflated prices? is that how it works?

[mrk4thom]

Apache said:

Isn't this because we are now buying the oil that was speculatively bought on the futures at inflated prices? is that how it works?

I think your right. Unfortunately it didn't stop them putting the prices up three months in advance.

[Nostrils]

WHAT A LOAD OF B O L L A R D S

[Nostrils]

I wonder who pays for the Petrol Retailers Association's Keep......it wouldnt be the petrol companies and suppliers would it!!

[steebo888]

mrk4thom said:

I heard Ray Holloway on Radio 4 yesterday, what a tt. Oil is down +45% from peak and the pound is moved 12%, therefore net 30%, therefor Unleaded should be 70-80p.

I'd love to dip him in a barrel of oil, then make him smoke a cigarette.

didnt they use that as an excuse before saying that oil price is also high because of the weak $. Now becase the $ is stronger it is keeping fuel price high although oil price has dropped

[Antj]

its not the oil guys thats dictating the price at the moment, it is in fact the dollar, This week will only intensify these differences as the dollar weakens even further agaisnt the pound and Euro.

Also a little fact no one has really reported on yet is that fact that OPEC have reduced production twice in the last 3 weeks. There worried demand is falling thus pushing prices further down, so there holding back to stabilise prices.

Those expecting prices to drop are really optimistic, but its never going to happen. the 1.12 litre is here to stay.

[DBRacingGod]

Bunch of cock.

Edited by DBRacingGod on Thursday 18th September 12:06

Edited by DBRacingGod on Thursday 18th September 12:07

[gary hubbard]

now they no how much they can charge and get away with it they will not reduce prices by much . our own silly faults for putting up with it in the first place .

[hill79]

Seems to me the government needs to look at the fuel industry as a whole and have a serious think about how to protect their voters from the insane profiteering thats going on at the moment.

I'm all for companies making profits. I don't expect them to supply my petrol, gas and electricity at cost price out of the kindness of their own hearts but I resent the fact that we're all being held over a (oil) barrel and the government are doing sweet FA to prevent it. All this talk of the weak pound and so on is utter boswellox.