Why are fuel prices still high?

Motorists are still being hit by rises in petrol prices even though oil is up to 25 per cent cheaper than in it was mid-July. Motorist throughout Britain are asking the question, “when oil increases in price, why do fuel prices react with amazing speed, but when the oil price falls, reaction to this is at a snails pace? Yet the AA reported that the average price at the pumps has actually risen by 0.5p a litre – to 112.72p – since the end of last week.

The motoring organisation said an 18 per cent drop in the wholesale price of petrol has not been fully passed on and that this reduction in price should represent a reduction of 8.5p per litre at the pump. Fuel prices hit a peak in July and they have been dropping from their peak on the 17th of that month at 119.7 for petro; and 133.25 for diesel, although not at the rate that they increased.

Published by admin on September 9th, 2008 in Saving Fuel, Road Safety, UK Driving News