Petrol prices hit record £1.22 a litre...
but oil giants deny claims of profiteering
By Ray Massey, Transport Editor
Last updated at 11:34 AM on 11th December 2010
Rising costs: Petrol prices are to set to increase again, with a further climb expected in the New Year
The price of petrol has hit a new average high of 121.76p a litre, with the AA accusing oil companies and retailers of profiteering.
They, however, have hit back, blaming soaring oil and wholesale fuel prices for the increase.
It means every gallon of fuel now costs £5.53½. And filling up the average family car comes to a hefty £60.88.
Prices are likely to rise even higher in the New Year when the VAT rate increases by 2.5 per cent to 20 per cent.
The AA, which has accused oil giants and fuel retailers of making excessive profits, said: ‘Average UK petrol prices have hit a new record. The latest price – revealed yesterday from Thursday’s fuel receipts – is 121.76p a litre.’
At the beginning of 2010, petrol averaged 109.88p a litre and since then it has risen by 11.88p a litre. It means drivers are paying £5.94 extra to fill their tanks.
And the extra monthly cost of petrol for a two-car family is now £25.23.
Diesel is currently selling at an average of 125.73p a litre, still short of the record 133.25p set on July 17, 2008. The previous record petrol price was 121.61p, set on May 12.
Snow-bound: The petrol price increases come after winter weather brought chaos to Britain's roads
AA president Edmund King said: ‘In the past week, we have seen the average price of petrol shoot up 1.7p a litre across the UK and diesel rise 1.61p. This comes at a particularly bad time for drivers who have struggled with appalling winter weather and often seen their fuel drain away while stuck in snow-bound traffic jams.
More...
How to cut your petrol costs (thisismoney.co.uk)
What next for the oil price? (thisismoney.co.uk)
Calculator: How a rising petrol price affects you (thisismoney.co.uk)
After the Big Freeze... the Big Thaw: Britain basks in balmy blast from the West
‘Although the wholesale price of petrol has risen sharply in the past fortnight, there is a growing feeling of helplessness among drivers, with winter travel disruption and ever-rising fuel costs.
‘If current prices persist, the New Year increase in fuel duty and VAT will push petrol prices up to 124p a litre.
‘Our only hope is that either oil and fuel markets settle back down or the pound strengthens against the dollar. Until then, it is an even more uncomfortable ride for families trying to keep their cars on the road.’
RAC motoring strategist Adrian Tink said: ‘It’s unbelievable to think that, compared with this time last year, petrol is 13p per litre more expensive.
Through the roof: Petrol pump prices are set to steadily increase in the next month
That’s over £7 more every time you fill up an average tank.’ He continued: ‘You can’t get away from the fact that we have seen five rises in fuel duty in the past two years – and we’re due another one in January plus a VAT rise.
‘Who knows what the price will be come January 5 – an average of 125p per litre is very feasible.
‘If the Government is serious about ending the war on motorists, then for the large majority of drivers that starts at the petrol pumps.
‘January’s rise must be cancelled, and the overall issue of the price of petrol in this country needs looking at urgently.’
Brian Madderson, chairman of the petrol retailers’ trade association, RMI Petrol, ‘strongly refuted’ charges of profiteering and blamed the rising wholesale cost of petrol.
He said margins retained by filling stations were down to 3p a litre and retailers were going out of business at the rate of 500 a year, adding: ‘The wholesale cost of petrol has risen by 5p a litre since November 18 and 1.5p since last week.
‘Retailers are struggling to keep up and pay their own rising fuel bills.’
He said the record price of petrol had come about in the wake of crude oil rising to a two-year high of more than $91 (£57.65) per barrel
but oil giants deny claims of profiteering
By Ray Massey, Transport Editor
Last updated at 11:34 AM on 11th December 2010
Rising costs: Petrol prices are to set to increase again, with a further climb expected in the New Year
The price of petrol has hit a new average high of 121.76p a litre, with the AA accusing oil companies and retailers of profiteering.
They, however, have hit back, blaming soaring oil and wholesale fuel prices for the increase.
It means every gallon of fuel now costs £5.53½. And filling up the average family car comes to a hefty £60.88.
Prices are likely to rise even higher in the New Year when the VAT rate increases by 2.5 per cent to 20 per cent.
The AA, which has accused oil giants and fuel retailers of making excessive profits, said: ‘Average UK petrol prices have hit a new record. The latest price – revealed yesterday from Thursday’s fuel receipts – is 121.76p a litre.’
At the beginning of 2010, petrol averaged 109.88p a litre and since then it has risen by 11.88p a litre. It means drivers are paying £5.94 extra to fill their tanks.
And the extra monthly cost of petrol for a two-car family is now £25.23.
Diesel is currently selling at an average of 125.73p a litre, still short of the record 133.25p set on July 17, 2008. The previous record petrol price was 121.61p, set on May 12.
Snow-bound: The petrol price increases come after winter weather brought chaos to Britain's roads
AA president Edmund King said: ‘In the past week, we have seen the average price of petrol shoot up 1.7p a litre across the UK and diesel rise 1.61p. This comes at a particularly bad time for drivers who have struggled with appalling winter weather and often seen their fuel drain away while stuck in snow-bound traffic jams.
More...
How to cut your petrol costs (thisismoney.co.uk)
What next for the oil price? (thisismoney.co.uk)
Calculator: How a rising petrol price affects you (thisismoney.co.uk)
After the Big Freeze... the Big Thaw: Britain basks in balmy blast from the West
‘Although the wholesale price of petrol has risen sharply in the past fortnight, there is a growing feeling of helplessness among drivers, with winter travel disruption and ever-rising fuel costs.
‘If current prices persist, the New Year increase in fuel duty and VAT will push petrol prices up to 124p a litre.
‘Our only hope is that either oil and fuel markets settle back down or the pound strengthens against the dollar. Until then, it is an even more uncomfortable ride for families trying to keep their cars on the road.’
RAC motoring strategist Adrian Tink said: ‘It’s unbelievable to think that, compared with this time last year, petrol is 13p per litre more expensive.
Through the roof: Petrol pump prices are set to steadily increase in the next month
That’s over £7 more every time you fill up an average tank.’ He continued: ‘You can’t get away from the fact that we have seen five rises in fuel duty in the past two years – and we’re due another one in January plus a VAT rise.
‘Who knows what the price will be come January 5 – an average of 125p per litre is very feasible.
‘If the Government is serious about ending the war on motorists, then for the large majority of drivers that starts at the petrol pumps.
‘January’s rise must be cancelled, and the overall issue of the price of petrol in this country needs looking at urgently.’
Brian Madderson, chairman of the petrol retailers’ trade association, RMI Petrol, ‘strongly refuted’ charges of profiteering and blamed the rising wholesale cost of petrol.
He said margins retained by filling stations were down to 3p a litre and retailers were going out of business at the rate of 500 a year, adding: ‘The wholesale cost of petrol has risen by 5p a litre since November 18 and 1.5p since last week.
‘Retailers are struggling to keep up and pay their own rising fuel bills.’
He said the record price of petrol had come about in the wake of crude oil rising to a two-year high of more than $91 (£57.65) per barrel
