Financial News
- 25 January 2013, 19:26
Petrol Price Rise On Way As 'Floodgates Open'
Petrol prices are set to rise by up to four pence a litre in the next few days, retailers have predicted.
The rise was forecast by the Petrol Retailers Association (PRA), and would add around £2 to the cost of filling a typical family car.
It comes as forecourts pass on increased wholesale costs to motorists.
"Independent retailers have been soaking up this increase at the expense of already tight margins because they know how hard the motorist is squeezed," said PRA chairman Brian Madderson.
But he warned: "The floodgates will have to open soon."
The AA forecast a smaller rise of about 2.5 pence per litre, as it accused the industry of failing to pass on falls in wholesale prices as quickly as increases.
The Office of Fair Trading will decide next week whether to launch an investigation into the fuel market.
AA president Edmund King told the Daily Telegraph: "Another new year, another new round of pump price rises after the industry failed to pass on fully wholesale price savings.
"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."
Throughout the whole of 2012, the average price of a litre of petrol rose by 2.75p.
Despite a fall in fuel demand across northern Europe, and an apparent glut of petrol capacity, wholesale costs have risen steeply in the four weeks since Christmas.
Industry figures show the daily average selling prices in the UK have risen by less than one pence per litre for both petrol and diesel since January 1.
Mr Madderson also said that George Osborne should abandon plans to increase fuel duty from September.
"If fuel costs continue to rise as our sluggish economy and loss of AAA credit rating weaken the pound sterling against the US dollar, the Chancellor must abandon plans to increase duty ... when he presents his Spring Budget.
"Householders and businesses will be hard pressed to cope with market fluctuations let alone more Government tax intervention."
what do you think?
DermottJoe
we should all start walking to and from work and boycotte the filthy thieving government and oil company that would have us begging for our fuel that they have encouraged us to use for decades.why oh why wont our governments of the world encourage non oil or petroleum fueled cars?....profit,thats why.we now have electric cars that do a 200 mile round trip.with positive backing from the powers that be the reality is we could be totaly sufficient on electric cars. i hope the petrol industry collapses in on itself, and takes all the greedy bankers and politicians down with it.
johnnydee23
Probably do no good walking they'll only increase tax on shoes
stewgwyn
Why have wholesale prices increased if demand has fallen and there are surplus stocks ?
bjnk
We are manipulated day in day out by government,big business and market speculators. Ask Osborne about the present jump in price. You should all sign up to fairfuel.co.uk the more people lobbying parliament the better.
Nigel L
The OFT to decide whether to launch an investigation ! If Cameron is true to form he will order an inquiry but not untill 2 years after the next election.
movvi
Yep - and then he can ignore its findings if unfavourable!
Fred Spoons
The Office of Fair Trading? Ahhhh; bless their hearts.....
Brian Quinn
Things will get worse if Al Quaeda have their way. Look at the latest BP problem in Algeria.
davenlesley
Fuel companies have been ripping us off for years and now we find that the Office of Fair Trading will decide next week whether to launch an investigation into the fuel market. What took you so long
bjnk
Dave, they will probably decide not to just incase they find what we have known for years, and have to do something about it. Anyway they will have been directed to find petrol is too cheap and put it up.
johnnydee23
No investigation needed they won't criticise the government and they are the biggest culprits
Freeman Scotland
The price of red is still not too bad. We are ripped off far more by our own government. We are governed by consent, do not consent and free yourself from their shackles. It is up to you!!!!
movvi
Oh God. How much more can we be squeezed and how much poorer are we expected to become just trying to get to work?! I need to devise a car powered by grass or rabbits or rain or something. It's all we have in abundance now!
johnnydee23
They'd soon find a way to tax that aswell
johnnydee23
That's really naughty profiteering from fuel prices, can't the government do something, OH I forgot they already do! Easy pickings for all
Peter Coates
Our government are just puppets whose strings are pulled by big business and led by civil servants with no bolls.
happymike CHESTER
City traders have been trading in oil for ages now along with food commodities ,they ruined the property markets now going for commodities BIG BONUSES on the way and you and I are paying.!! SUCKERS!!!
ali baba
11:00am on 25/1/2013
Black gold as jimmy Jedi puts it.