Petrol prices rising despite drop in oil prices
October 6, 2008
Officials and consumers have been outraged recently after discovering that oil prices have plummeted by 40% yet petrol stations are still hiking up the cost of petrol. Officials are stating that this is having an effect on consumers’ pockets as well as on the economy as a whole, with consumers already struggling to cope with rising living costs, food prices, and borrowing costs.
Figures show that some petrol stations have been raising prices by around two pence per litre despite the cut in oil prices, and this is costing drivers extra money at an already difficult time. Officials have said that the oil companies are profiting by hitting consumers’ pockets, and have described the act of putting prices up as outrageous.
An official from the AA recently stated: ‘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 motorists before prices do drop. It smacks of profiteering. It really is outrageous that pump prices should be rising when oil is plummeting.’
However, an official from the Petrol Retailers’ Association blamed the price hikes on fluctuations in currency.
He said: ‘Oil is traded in US 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.’
He did add that in October pump prices would fall by around four pence per litre, but with oil already having fallen by 40% the AA said that price drops should have already filtered through by now.
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