Most motorists find that the amount it costs to run a vehicle is a real burden, especially when you consider the price of road tax, MOTs, services, car insurance, and petrol. This is why many will be upset to hear that the price of petrol is soon to increase by four pence per litre according to news reports published today. The Petrol Retailers Association has said that the increase in price is due to an unexplained leap in the cost of wholesale petrol, which has risen by 5 pence per litre. They have suggested that the increase in wholesale petrol prices may be due to ‘speculation’ by traders in the wholesale market.
Chairman of the Petrol Retailers Association, Brian Madderson said “We cannot explain to our customers why the wholesale price is going up so much – it is not due to Government tax, it is not due to Brent crude going up and it is not due to the weak currency exchange. So are traders, bankers or speculators taking British motorists for a ride? Motorists will understand that, in this winter weather, demand for petrol in this country has been at a low ebb. If there is no massive demand, why have wholesale costs been ramped up by nearly 5p per litre? We do not understand it – yet once again we are going to be accused of profiteering at the pumps when that is simply not true.”
Motorists have recently been benefiting from a decline in the cost of petrol for the past three months, however the AA have claimed that they have still missed out on profiting from a 2p fall in the wholesale price of petrol for the November-December period. They claim that including VAT this would lower the cost of petrol by 2.5p at the pumps, and Edmund King, president of the AA said: “Another new year, another new round of pump prices rises after the industry failed to pass on fully wholesale price savings. The Office of Fair Trading decides soon whether to launch an investigation into fuel prices, hopefully tackling the fuel industry’s treatment of drivers, consumers and businesses.”