Tuesday, October 19, 2021

Unleaded fuel cost drops 20 pct but prices still go up – enough to rile motorists

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Angry motorists have accused petrol stations of jacking up the price of fuel even as the price of crude has fallen.

Drivers are already frustrated with the price rises as their wages lag behind those for petrol, diesel and other energy sources.

Their anger was sparked as supermarkets announced their daily fuel price index, showing a 26 percent rise in cost for a litre of unleaded petrol over the past year.

The rise of up to 5p a litre in the past five months followed the collapse in the price of oil.

But some petrol stations have been charging as much as 6p a litre more for fuel.

Car servicing website Javed’s Car Care said the price rises had come “well before anyone had noticed the price of fuel had fallen significantly”.

The website’s chief operating officer Cilla Baird said: “I am staggered this should be happening a few weeks before the end of the month when we head into the September driving season.

“This is fuelling everyone’s frustration but fuel companies are seeing consumer spending as one of their best marketing opportunities.”

This is fuelling everyone’s frustration but fuel companies are seeing consumer spending as one of their best marketing opportunities. Cilla Baird, Javed’s Car Care

One fuel dealer, Mick Boland, from Booneley, County Durham, said he had not noticed any substantial price rises, but would expect to pass on savings to customers.

He said: “We are probably getting around 6p off a litre now but we might be getting a little bit more as people fill up.”

According to Ofgem figures, the amount paid for unleaded petrol has fallen by 6.4p a litre since June while the price for diesel has fallen by 3.7p.

There are some reports of increasing fuel costs which would be passed on to drivers.

But Mike Jervis, chief executive of the Uk Energy Retail Association, said: “The fact that these increases have been so small does not mean they haven’t happened, but it’s clear our customers are seeing all the cost savings of oil fall to the bottom line.”

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