Forecourt Industry Defends High Pump Prices
A body which represents independent forecourts defended the fact that petrol stations are still continuing to increase petrol prices despite the fall in the value of crude oil. Since April crude oil has gone down by 18% but petrol prices have only gone down by 1.8%. This has caused complaints from many drivers.
However the company has explained that crude oil only makes up 30% of the price of petrol. Fuel duty and VAT make up 60% and then there are marketing costs and transport costs as well as profit for the wholesaler and retailer. They have explained that as these costs have increased, they have not been able to lower prices significantly.
Prices are almost at an all time high with the highest prices for unleaded petrol occurring in May this year and diesel being just 3p below its highest price although remaining stable at the moment. It is causing many drivers to use less petrol and to not do as many journeys as they were in the past. When there is any chance of reduced petrol or diesel there are huge queues because it is so expensive. With all prices rising, many people are finding it difficult to manage financially and expensive petrol is something they just do not want to have to worry about.