UK Oil Prices Expected To Hit Record High Within Days

0
10
UK Oil Prices Expected To Hit Record High Within Days


Motorists will pay more than ever to refuel by the end of October, gas station owners say, sparking a row over the cause of sky-high prices at the pump.

The Petrol Retailers Association (PRA) predicted that historic highs set in April 2012 – of 142 pence per liter for gasoline and 148 pence for diesel – would be exceeded by the end of October.

Average prices had reached 141.35 pence and 144.84 pence respectively on Tuesday, according to Experian Catalist UK.

Parking lot prices have risen sharply in the past month, during which a shortage of drivers caused supply problems leading to panic buying that led to fuel shortages at gas stations across the country.

Average gasoline prices were 134.9 pence per liter in September, up from 113.3 pence per liter in the same month a year earlier, according to the latest Office for National Statistics inflation figures released on Wednesday .

Brian Madderson, chairman of the forecourt owners trade organization, said the “main reason” for the increase in costs at the pump was the rise in the price of oil, which has doubled in 12 months to a high in three years of $ 85 for Brent crude this week.

The PRA attributed this to the oil-rich OPEC group of countries and the reduction in Russian production, just as a global economic rebound from Covid-19 fuels greater demand for fuel.

Motorists’ organizations acknowledged the effect of global oil markets, but said gas station owners also used it as an excuse to hide their own role.

RAC fuel spokesman Simon Williams said fuel prices appeared to be on an “inevitable journey” to record highs.

He said the price of oil was “primarily” at the root of the additional costs for motorists, but accused gasoline retailers of “reducing gasoline more than they normally do to around 8p on liter, which is an additional blow for drivers ”.


Sign up for the daily Business Today email or follow Guardian Business on Twitter at @BusinessDesk

He said the government should temporarily cut VAT on fuel, but said any fuel tax reduction of 58 pence per liter would simply be pocketed by fuel retailers. “We strongly urge retailers not to contribute more to the price hike at the pump,” he said.

Luke Bosdet, AA spokesperson for fuel, pointed to figures indicating that gasoline retailer margins have increased since the start of the pandemic.

He said they had passed on only half of their savings when global oil prices collapsed in the spring of 2020, but oil prices are now “rising faster than they should.”

“Sooner drivers will be able to switch to electric vehicles [electric vehicles], charge from home and get a photo of the on-road fuel industry best, ”he said.

Rising fuel costs come amid fears that inflationary pressures are pushing up household costs.

LEAVE A REPLY

Please enter your comment!
Please enter your name here